===== PAGE 1 =====

CITY OF PALM DESERT FISCAL YEAR ENDED JUNE 30, 2025 # ANNUAL COMPREHENSIVE FINANCIAL REPORT 73510 Fred Waring Drive, Palm Desert, CA 92260 www.palmdesert.gov ===== PAGE 2 =====

## ANNUAL COMPREHENSIVE FINANCIAL REPORT of the CITY OF PALM DESERT, CALIFORNIA For the Fiscal Year ended June 30, 2025 Prepared by the Finance Department ## City Treasurer/Director of Finance Veronica Chavez Deputy Director of Finance John Ramont Deputy Director of Finance Austin Yaple Finance Staff (in alphabetical order by positions and last names) ACCOUNTING SUPERVISOR Tristan Morales ACCOUNTANT Arlene Arellano ACCOUNTANT Sarah Sullivan FINANCE SUPERVISOR James Bounds ACCOUNTING TECHNICIAN I Araceli Castro PAYROLL COORDINATOR Miguel Zepeda SENIOR ADMINISTRATIVE ASSISTANT Michelle Loredo SENIOR ADMINISTRATIVE ASSISTANT Daniel Mora SENIOR MANAGEMENT ANALYST Celina Cabrera SENIOR MANAGEMENT ANALYST Cristal Ortega MANAGEMENT ANALYST Skky Garcia MANAGEMENT ANALYST Staci Kolbeck ===== PAGE 3 ===== ## UNIDALDESERT ## This page intentionally left blank ===== PAGE 4 ===== ## CITY OF PALM DESERT, CALIFORNIA ## Annual Comprehensive Financial Report For the Year Ended June 30, 2025 ## Table of Contents INTRODUCTORY SECTION Page Letter of Transmittal 9 GFOA Certificate of Achievement 10 Organizational Structure 14 FINANCIAL SECTION 17 Independent Auditors' Report 20 Management's Discussion and Analysis (Unaudited) 21 Basic Financials 25 Statement of Net Position 38 Statement of Activities 41 Government Fund Financial Statements 43 Balance Sheet 43 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 46 Statement of Revenues, Expenditures and Changes in Fund Balances 47 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 50 Proprietary Fund Financial Statements 51 Statement of Net Position - Proprietary Funds 51 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 52 Statement of Cash Flows - Proprietary Funds 53 Fiduciary Fund Financial Statements 55 Statement of Fiduciary Net Position 55 Statement of Changes in Fiduciary Net Position 56 ===== PAGE 5 ===== ## Table of Contents ## FINANCIAL SECTION (continued) Page Required Supplementary Information 114 Schedule of Changes in the Net Pension Liability/(Asset) and Related Ratios - Miscellaneous Plan 114 OPEB - Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios 116 Schedules of Plan Contributions 119 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 120 General Fund 120 Prop A Fire Tax 122 Housing Asset Fund 123 Housing Authority 124 Notes to Required Supplementary Information 125 Combining Balance Sheet 132 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 142 Special Revenue Funds - Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 151 Traffic Safety 151 Gas Tax 152 Measure A 153 Housing Mitigation Fee 154 Community Development Block Grant 155 Child Care Program 156 Public Safety Police Grants 157 New Construction Tax 158 Planned Drainage 159 Parks and Recreational Facilities 160 Traffic Signals 161 Fire Facilities Restoration 162 Recycling 163 Energy Independence Loan 164 Air Quality Management 165 Aquatic Center 166 Cannabis Compliance 167 El Paseo Assessment District 168 Various Landscape and Lighting District 169 Affordable Housing 170 Permanent Local Housing Allocation Grant 171 Opioid Settlement 172 Library Services 173 ===== PAGE 6 ===== ## Table of Contents ## FINANCIAL SECTION (continued) ## Required Supplementary Information (continued) Capital Project Funds - Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual 174 Capital Projects Reserve 174 Drainage Facilities 175 Economic Development 176 Parks and Recreational Facilities 177 Art in Public Places 178 Signalization 179 Capital Golf 180 Buildings 181 Library 182 Nonmajor Debt Service Funds - Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 183 City Highlands Undergrounding 183 Internal Service Funds 184 Combining Statement of Net Position 184 Statement of Revenues, Expenses and Changes in Net Position 185 Combining Statement of Cash Flows 186 Fiduciary Funds - Custodial Funds 187 Combining Statement of Fiduciary Net Position 187 Combining Statement of Fiduciary Net Position 188 ===== PAGE 7 ===== ## Table of Contents Page STATISTICAL SECTION 189 Financial Trends 192 Net Position by Component 193 Changes in Net Position 194 Changes in Net Position 195 Fund Balances of Governmental Funds 197 Changes in Fund Balances of Governmental Funds 198 Graphs - Changes in Fund Balances of Governmental Funds 199 Supplemental Historical General Fund Revenues 200 Supplemental Graph - Historical General Fund Revenues 201 Supplemental Historical General Fund Expenditures 202 Supplemental Graph - Historical General Fund Expenditures 203 Supplemental Historical General Revenue and Expenditures Per Capita 205 Revenue Capacity Information 206 Assessed Value and Estimated Actual Value of Taxable Property 207 Historical Net Assessed Taxable Values Citywide and Graph - Assessed Valuation Growth 208 Supplemental FY 2021 and 2020 Breakdown of Basic 1% Property Tax Rate Not in Redevelopment Project Area 209 Property Tax Rates Direct and Overlapping Property Tax Rates 210 Principal Property Taxpayers 211 Property Tax Levies and Collections 212 Supplemental Top 25 Sales Tax Generators and Graph - Historical Sales Tax Trends 213 Debt Capacity Information 214 Ratios of Outstanding Debt by Type 215 Ratios of General Bonded Debt Outstanding 216 Supplemental Special Assessment Information 217 Direct and Overlapping Government Activities Debt 218 Legal Debt Margin Information 219 Pledged-Revenue Coverage 220 Demographic and Economic Information 221 Demographic and Economic Statistics 222 Principal Employers 223 Supplemental Miscellaneous Statistics 224 Operating Information 225 ===== PAGE 8 ===== Full-Time Equivalent City Government Employees by Function/ Program ..... 226 Operating Indicators by Function/ Program ..... 227 Redevelopment Custodial Project Areas Map ..... 228 SUPPLEMENTAL REDEVELOPMENT CUSTODIAL STATISTICAL SECTION ..... 229 Tax Allocation Bond Issue Information ..... 230 Capital Asset Statistics by Function/ Program ..... 231 Historical Tax Increment - Redevelopment Property Tax Trust Fund Summary ..... 232 ===== PAGE 9 ===== ## INTRODUCTORY SECTION ===== PAGE 10 =====

# CITY OF PALM DESERT 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760 346-0611 INFO@PALM-DESERT.ORG January 30, 2026 Residents of Palm Desert, Honorable Mayor and Members of the City Council The Finance Department is pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Palm Desert for the fiscal year ended June 30, 2025. The financial statements are prepared in accordance with generally accepted accounting principles (GAAP) and the Governmental Accounting Standards Board (GASB). We believe the data, as presented, is accurate in all material respects and is presented in a manner that fairly represents the financial position and changes in financial position of the City as measured by the financial activity of each of its funds. We also believe that all disclosures necessary to enable the reader to fully understand the City's financial activities have been presented. Responsibility for the accuracy, completeness and reliability of the information contained in this report rests with the City. The City of Palm Desert conducts an annual audit, which is performed by an independent certified public accountant. The independent audit of the City's financial statements for fiscal year ended June 30, 2025, was conducted by LSL, LLP. The auditor's unmodified opinion on the basic financial statements is included in the Financial Section of this report. This is the most favorable opinion. As part of the City's annual audit engagement, the auditors reviewed the City's internal control structure as well as compliance with applicable laws and regulations. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute assurance, that the financial statements are free of any material misstatements. The results of the City's annual audit for fiscal year ended June 30, 2025, provided no instances of material weaknesses in connection with the internal control structure or significant violations of applicable laws and regulations. As recipients of federal, state and county financial resources, the City may be required to undergo an annual single audit. For the fiscal year ended June 30, 2025, the City will have a single audit performed. Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. ## PROFILE OF THE CITY OF PALM DESERT Located in Riverside County in the geographical center of the Coachella Valley, Palm Desert was incorporated on November 26, 1973, as a General Law City. On November 4, 1997, voters overwhelmingly approved Measure LL adopting a city charter. ===== PAGE 11 ===== Under the provisions of the charter, the City of Palm Desert has full authority over its own municipal affairs including: bidding and contracting procedures; regulation of parks, libraries, and other facilities; certain fees; imposition of taxes; municipal zoning; salaries of officials and employees; municipal utilities; and municipal election procedures. The City operates under a Council-Manager form of government. The City Council is comprised of five members elected to four-year terms every two years by the residents of the City. On January 25, 2024 the Palm Desert City Council adopted Ordinance No. 1406 establishing five single-member council districts. The transition to single-member council districts, from the two previously, will be complete following the November 2026 election for two members of City Council representing Districts 4 and 5. Each December, the City Council selects the Mayor from among its members for a one-year term. The City Council appoints the City Manager and the City Attorney. The City operates as a “contract city,” primarily utilizing agreements with other governmental entities, private firms, and individuals to provide many services. Contracted services include: police protection through the County of Riverside; fire protection through Cal-Fire; animal control; road maintenance and construction services; legal services; landscape maintenance; and recreation program services. Palm Desert is a member of the California Joint Powers Insurance Authority that provides insurance coverage for the City. Water, sewage treatment and wastewater disposal are provided by the Coachella Valley Water District. Southern California Gas Company supplies natural gas to the City and electric power is provided by the Southern California Edison Company. Waste Disposal is provided by Burrtec Waste & Recycling Services. Telephone/Internet service is available through Frontier Communications. Cable television/Internet service is provided by Time Warner Cable/Spectrum. The City provides traditional municipal, public enterprise, and housing services as follows: ## Municipal Services Public improvements, infrastructure and maintenance Public art and community promotion Planning, zoning, building and engineering Housing and community development Code compliance Economic development and business advocacy Legislative, city clerk, visitor's services, public information, general administration, fiscal services, human resources, and risk management Building permitting, inspections and library services

Palm Desert Civic Center

Public Enterprise Services

Golf course

Office complex

Internal service

Blended & Discrete Component Units Palm Desert Housing Authority Palm Desert Financing Authority Palm Desert Recreational Facilities Corporation The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General, Special Revenue, Debt Service, and Capital Project Funds are included in the annual appropriated budget. Budgetary amounts for Debt Service, Capital Projects, and certain Special Revenue Funds are adopted annually; however, these budgets are considered to be long-term in nature. ===== PAGE 12 ===== The City also maintains an encumbrance accounting system of purchase orders and contracts at the fund level as a means of accomplishing budgetary control. At each fiscal year end, open encumbrances are carried over to the new fiscal year. Purchase orders are reviewed to ensure that funds are available and that requests are properly authorized prior to being released to vendors. The adopted budget for fiscal year 2024-25 was prepared in accordance with accounting principles generally accepted in the United States of America. As reflected in the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. ## LOCAL ECONOMY The City comprises an area of approximately 26 square miles and, as of January 1, 2025, has a population of 51,980 according to data provided by the California Department of Finance. In addition to permanent residents, approximately 20,000 seasonal residents make Palm Desert their home for three to six months each year. The City has cultivated a sound foundation of general fund revenues including sales tax, transient occupancy tax, licenses and permits, property tax, and investment earnings. The City's main revenue sources are transient occupancy taxes and sales tax. Due to the timing of the City's incorporation, in 1973, and the implementation of Proposition 13, the City receives less than 7 percent of property taxes; therefore, the City relies heavily on sales tax and transient occupancy tax. As a community where economic, environmental, social, and cultural development flourishes, Palm Desert is a much sought-after place to visit and reside. Palm Desert is the first city in Riverside County to create a public art program and is home to numerous cultural attractions including: the McCallum Theatre for the Performing Arts, a 1,127-seat theater that hosts a wide variety of A-list entertainers, touring theatrical productions and arts-related educational programs; the Living Desert Zoo and Gardens, a 1,200-acre facility containing a wide array of plants and animals from desert regions around the world; and the Palm Desert Art in Public Places program, a museum without walls, featuring more than 150 works of art on permanent display throughout the city. Palm Desert's active, five-star accredited Chamber of Commerce has more than 1,125 members who work to promote, support, and enhance business prosperity, civic vitality, and the quality of life within their community. Noted for its extensive array of retail options, including the world-famous upscale shopping destination of El Paseo, Palm Desert is home to a variety of malls and retail centers including The Shops at Palm Desert, Desert Crossing, The Gardens on El Paseo, and El Paseo Village. The internationally acclaimed Desert Willow Golf Resort, one of the nation's premier municipal courses, boasts 36 holes of championship golf and stunning scenery in close proximity to first-class hotel accommodations and fine dining. And in 2024, ground was broken for development to build a five-and-a-half-acre Wavegarden Cove, DSRT Surf, which will make it the largest of its kind in the United States. In addition to being the home of the Coachella Valley's only community college, College of the Desert, Palm Desert is the location of satellite campuses for both the University of California, Riverside, and California State University, San Bernardino, the region's only public, four-year university.

Desert Willow Golf Resort The State of California Employment Development Department Labor Market Information Division reported that the City of Palm Desert had an unemployment rate of 6.8% ===== PAGE 13 ===== compared to Riverside County, which had a rate of 6.0%. Worldwide issues such as inflation and supply-chain constraints presented a new set of challenges over the course of the fiscal year, and the City continues to face such challenges through the same lens of fiscal responsibility and sound financial practices that have proven successful in the past. Despite such challenges, the City of Palm Desert continued to provide exceptional services and amenities to residents throughout the course of the year. ## LONG-TERM FINANCIAL PLANNING In June 2025, the City Council approved a total of $67.11 million in funding for various capital improvement projects for Fiscal Year 2025-26. Projects include resurfacing streets, median landscaping, sidewalk repairs and construction, accessibility improvements, street widening, improving drainage areas, park improvements, and construction for Fire Station 102 and the City's new Library facility. ## CERTIFICATES OF AWARDS FOR OUTSTANDING FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Palm Desert for its comprehensive annual financial report for the fiscal year ended June 30, 2024. This was the 27th consecutive year that the City has achieved this prestigious award. To receive the Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. ## ACKNOWLEDGEMENTS The preparation of this report is attributable to the efficient and dedicated staff of the Finance Department who are individually recognized on the title page. The Mayor and the City Council are credited for their support in planning and conducting the operations of the City in a prudent, responsible and progressive manner. Recognition is also given to all employees of the City of Palm Desert who continue to serve our community with commitment and dedication throughout the year. Our greatest appreciation goes to you, the residents of Palm Desert, for your continued support, input, and guidance in helping us serve you better, thus preserving our city's quality of life and reputation for innovation and leadership. Respectfully submitted, Signed by: Chris Escobedo 883A8CB34D6340A... Chris Escobedo City Manager Signed by: Veronica Chavez 06489C3DD08D432... Veronica Chavez Director of Finance ===== PAGE 14 =====

Government Finance Officers Association ## Certificate of Achievement for Excellence in Financial Reporting Presented to ## City of Palm Desert California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2024

Executive Director/CEO ===== PAGE 15 ===== ## This page intentionally left blank ## GUMO ===== PAGE 16 ===== ## CITY OF PALM DESERT List of Principal Officials as of June 30, 2025 City Council - Manager Form of Government ## CITY COUNCIL JAN C. HARNIK Mayor EVAN TRUBEE Mayor Pro-Tempore GINA NESTANDE Council Member JOE PRADETTO Council Member KARINA QUINTANILLA Council Member ## CITY ADMINISTRATION CHRIS ESCOBEDO City Manager Israh Shah City Attorney - Best, Best & Krieger, LLP Veronica Chavez Director of Finance/City Treasurer ## PALM DESERT HOUSING AUTHORITY CHRIS ESCOBEDO Executive Director ## SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY CHRIS ESCOBEDO Executive Director ===== PAGE 17 =====

===== PAGE 18 =====

===== PAGE 19 ===== ## UNIDALDESERT ## This page intentionally left blank ===== PAGE 20 ===== FINANCIAL SECTION ===== PAGE 21 ===== # INDEPENDENT AUDITORS' REPORT To Honorable Mayor and Members of the City Council City of Palm Desert, California ## REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS ## OPINIONS We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Palm Desert, California (hereafter, the "City"), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. ## BASIS FOR OPINIONS We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. ## RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. ===== PAGE 22 ===== ## AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. - Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. ## REQUIRED SUPPLEMENTARY INFORMATION Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, and required pension and other post-employment benefits schedules as listed on the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. ===== PAGE 23 ===== ## SUPPLEMENTARY INFORMATION Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying combining and individual fund financial statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. ## OTHER INFORMATION Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. ## OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated January 30, 2026, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City's internal control over financial reporting and compliance. LSL, LLP Irvine, California January 30, 2026 ===== PAGE 24 ===== ## UNIDALDESERT This page intentionally left blank ===== PAGE 25 ===== # MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) Financial Highlights for Year Ended June 30, 2025 ===== PAGE 26 ===== # CITY OF PALM DESERT # MANAGEMENT'S DISCUSSION AND ANALYSIS Our discussion and analysis of the City of Palm Desert's financial performance for the fiscal year ended June 30, 2025, provides: a comparison of current year to prior year ending results based on the government-wide financial statements; an analysis of the City's overall financial position and results of operations to assist users in evaluating the City's financial position; a discussion of significant changes that occurred in the funds; and significant budget variances. In addition, it describes the activities during the year for capital assets and long-term debt. We end our discussion and analysis with a description of known facts, decisions, and conditions that are expected to have a significant effect on the financial position or results of operations. Please read it in conjunction with the transmittal letter and the City's financial statements. ## FINANCIAL HIGHLIGHTS - The City's total assets and deferred outflows exceeded its liabilities and deferred inflows by $835.62 million (net position). - The City's governmental activities net position increased by $12.40 million, and the net position of the business-type activities decreased by $1.77 million. During the year, the City's revenues were $154.53 million and expenses were $142.13 million in its governmental activities, compared to fiscal year 2024, where revenues were $155.47 million and expenses were $167.64 million. - In the City's business-type activities, expenses were $16.17 million, $1.84 million more than the $14.33 million in prior year expenses. Revenues generated from golf course green fees, merchandise sales, rental income and other revenues increased by $433.19 thousand compared to prior year, and Parkview Office Complex revenues for business-type activities revenues increased $105.06 thousand from prior year. - The City's governmental activities program revenues and general revenues decreased by $0.94 million, while program expenses decreased by $25.51 million. - The City kept its General Fund expenditures within spending limits by $9.69 million. The revenues and transfers available for expenditures exceeded budget by $7.60 million. ## USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The Statement of Net Position and Statement of Activities (on pages 39, 40, 41 and 42) provide information about the activities of the City as a whole and present a long-term view of the City's finances. The fund financial statements start on page 43. For governmental activities, these fund statements tell how these services were financed in the short term as well as what remains for future spending. The fund financial statements also report the City's operation in more detail than the government-wide statements by providing information about the City's most significant funds and other funds. The remaining fiduciary fund statement provides financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government. ===== PAGE 27 ===== # REPORTING THE CITY AS A WHOLE ## The Statement of Net Position and the Statement of Activities: Our analysis of the City as a whole begins on page 40. One of the most important questions asked about the City's finances is, "Is the City as a whole better off or worse off as a result of the year's activities?" The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that answers this question. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the City's net position and changes in them. Net position is the difference between total assets and deferred outflows of resources less liabilities and deferred inflows, which is one way to measure the City's financial health, or financial position. Over time, increases or decreases in the City's net position are an indication of whether its financial health is improving or deteriorating. Other non-financial factors should be considered, however, such as changes in the economy that could cause a decrease in consumer spending. ## In the Statement of Net Position and the Statement of Activities, we separate City activities as follows: Governmental activities – Most of the City’s basic services are reported in this category, including general administration (city manager, city clerk, finance, etc.), housing and redevelopment, public safety (police and fire protection), public works, parks, recreation and culture departments. Property taxes, sales tax, transient occupancy tax, user fees, interest income, franchise fees, state and federal grants, contributions from other agencies, and other revenues finance these activities. Business-type activities – The City charges customers to cover all or most of the cost of certain services it provides. The City's municipal golf course, Desert Willow, and the City's Parkview Office Complex activities are reported in this category. Component unit activities – The City includes one separate legal entity in its report – the Palm Desert Recreational Facilities Corporation. Although legally separate, this “component unit” is important because the City is financially accountable for it. ## REPORTING THE CITY'S MOST SIGNIFICANT FUNDS ## Fund Financial Statements: The fund financial statements provide detailed information about the most significant funds and other funds, not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management established many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other resources. The City has three types of funds: governmental, proprietary and fiduciary. Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The differences of results in the Governmental Fund financial statements to those in the Government-wide financial statements are explained in a reconciliation following each Governmental Fund financial statement. ===== PAGE 28 ===== Proprietary funds – When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. The City's enterprise funds are the same as the business-type activities we report in the government-wide statements, but provide more detail and information such as a statement of cash flows. Fiduciary funds — Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Palm Desert operations. The accounting used for fiduciary funds is much like that used for proprietary funds. ## THE CITY AS TRUSTEE ## Reporting the City's Fiduciary Responsibilities: The City is the trustee, or fiduciary, for the Successor Agency to the Palm Desert Redevelopment Agency's (Successor Agency) private-purpose trust fund and for certain custodial funds held on behalf of developers and its employees' retiree service stipend fund. The City's fiduciary activities are reported in separate Statement of Fiduciary Net Position, Statement of Changes in Fiduciary Net Position, Combining Statement of Statement of Assets and Liabilities-All Custodial Funds, and Combining Statement of Changes in Fiduciary Net Position-All Custodial Funds. We exclude these activities from the City's other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. ## THE CITY AS A WHOLE During the fiscal year ending June 30, 2025, the City's combined net position increased $10.62 million from $825.01 million to $835.62 million. A separate review of the net change in the governmental and business-type activities is provided for the reader. Our analysis focuses on the net position (Table 1) and changes in net position (Table 2) of the City's governmental and business-type activities. ===== PAGE 29 ===== ## TABLE 1 ## NET POSITION (IN MILLIONS) ## As of June 30, 2025 and 2024

	Governmental Activities		Business-Type Activities		Total
	As Restated				As
	2025	2024	2025	2024	2025	Restated 2024
Current and restricted assets	$ 399.01	$ 402.21	$ 12.31	$ 13.27	$ 411.31	$ 415.48
Noncurrent assets
Receivables	3.26	3.26	8.59	5.19	11.84	8.44
Capital assets	429.59	424.68	66.97	68.70	496.56	493.38
TOTAL ASSETS	831.86	830.15	87.86	87.16	919.72	917.31
Deferred outflows of resources	$ 14.88	$ 19.41	$ -	$ -	$ 14.88	$ 19.41
Current liabilities	33.77	44.68	1.63	1.54	35.40	46.22
Noncurrent liabilities	51.53	55.55	1.78	1.54	53.32	57.09
TOTAL LIABILITIES	85.30	100.23	3.42	3.08	88.72	103.31
Deferred inflows of resources	$ 3.55	$ 3.83	$ 6.71	$ 4.58	$ 10.26	$ 8.40
Net position:
Net investment in capital assets	426.39	413.79	66.82	68.47	493.21	482.26
Restricted	189.10	175.95	-	-	189.10	175.95
Unrestricted	142.40	155.76	10.91	11.04	153.32	166.80
TOTAL NET POSITION	$ 757.89	$ 745.50	$ 77.73	$ 79.51	$ 835.62	$ 825.01

===== PAGE 30 =====

The City’s governmental activities net position increased $12.40 million. The City’s net position is made up of three components: Net investment in capital assets; restricted net position; and unrestricted net position. For governmental activities, unrestricted net position, which represents the part of net position that can be used to finance day-to-day operations, accounted for 19 percent of the overall total net position. Unrestricted net position decreased $14.85 million from $155.76 million in 2024 to $140.91 million in 2025, and restricted net position increased from $175.95 million to $189.10 million, an increase of $13.15 million. The increase in unrestricted net position was primarily driven by increases in sales tax revenues and reductions in program expenses across all government activities. Total charges for services increased from $39.35 million in 2024 compared to $41.93 million in 2025, an increase of $2.58 million; and transient occupancy tax increased from $23.02 million in 2024 to $23.88 million in 2025, representing an increase of $861.33 thousand. Investment earnings saw a decrease of $1.40 million from 2024 to 2025 as interest rates remained elevated throughout the year with a slight downward trend toward the end of fiscal year 2025. The increase of $13.15 million in restricted net position was due to restricted special projects decreasing by $17.54 million from the prior year, while restricted capital projects funds increased by $30.69 million. During the year, construction on major projects continued; including work on Fire Station 102, and the City's new Library facility, in addition to continuation of the annual street resurfacing program, and the Walk n Roll PD construction. Investment in capital assets in governmental activities increased by $14.10 million, slightly over 6 percent of the total balance. The City's governmental activities total assets and deferred outflow of resources combined decreased $2.82 million from $849.56 million in 2024 to $846.74 million in 2025. The primary increases to total assets during the fiscal year over prior year were in the City's Capital Assets which increased by $4.91 million over prior year, which was offset by a reduction of restricted cash balances with a fiscal agent from prior year of $8.95 million. Total governmental activities liabilities and deferred inflows combined decreased by $15.21 million from $104.06 million in 2024 to $88.85 million in 2025. A decrease of $14.93 million in total liabilities for the fiscal year was mainly attributable to a pension liability decrease of $1.85 million, accounts payable decrease of $10.80 million, and decrease of $1.98 million in bonds, notes, lease, SBITA, claims and compensated absences liabilities. The net position of the business-type activities recognized a decrease of $1.77 million, from $79.51 million during 2024 to $77.73 million during 2025. Total assets in the business-type activities increased by $700 thousand from $87.16 million in 2024 to $87.86 million in 2025. ===== PAGE 31 ===== ## TABLE 2 ## CHANGES IN NET POSITION (IN MILLIONS) ## As of June 30, 2025 and 2024

	Governmental Activities		Business-Type Activities		Total
	2025	2024	2025	2024	2025	2024
REVENUES
Program Revenues:
Charges for services	$ 41.93	$ 39.35	$ 13.96	$ 13.42	$ 55.89	$ 52.77
Operating grants and contributions	10.43	9.90	-	-	10.43	9.90
Capital grants and contributions	4.71	17.31	0.07	0.19	4.78	17.50
General Revenues:
Property taxes	16.06	15.33	-	-	16.06	15.33
Transient occupancy tax	23.88	23.02	-	-	23.88	23.02
Sales tax	31.38	25.39	-	-	31.38	25.39
Other taxes	5.98	3.78	-	-	5.98	3.78
Investment earnings	17.70	19.10	0.72	0.74	18.42	19.84
Other revenues	2.10	2.00	-	-	2.10	2.00
Transfers	0.36	0.29	(0.36)	(0.29)	(0.00)	-
TOTAL REVENUES	154.53	155.47	14.39	14.06	168.92	169.53
EXPENSES
General Government	39.38	46.41	-	-	39.38	46.41
Housing and redevelopment	9.72	27.87	-	-	9.72	27.87
Public safety	47.04	43.64	-	-	47.04	43.64
Parks, recreation and culture	16.87	20.32	-	-	16.87	20.32
Public works	26.11	28.65	-	-	26.11	28.65
Library	2.93	0.61	-	-	2.93	0.61
Interest on long-term debt	0.06	0.15	-	-	0.06	0.15
Golf Course - Desert Willow	-	-	12.82	12.97	12.82	12.97
Office Complex - Parkview	-	-	3.35	1.36	3.35	1.36
TOTAL EXPENSES	142.13	167.64	16.17	14.33	158.30	181.97
INCREASE (DECREASE) IN NET POSITION	12.40	(12.17)	(1.78)	(0.27)	10.62	(12.44)
BEGINNING NET POSITION, AS PREVIOUSLY REPORTED	733.14	745.31	79.51	79.78	812.65	825.09
RESTATEMENT	12.35	-	-	-	12.35	-
BEGINNING NET POSITION, AS RESTATED	745.49	745.31	79.51	79.78	825.00	825.09
ENDING NET POSITION	$757.89	$733.14	$ 77.73	$ 79.51	$835.62	$812.65

===== PAGE 32 =====

## Governmental Activities The beginning balance of net position was restated due to an error corrections related to fiscal year 2024 construction in progress and accrued interest. See Note 18 in the notes to the basic financial statements for further information. Total revenue decreased by $0.94 million from $155.47 million to $154.53 million. Factors that contributed to the changes in revenues are as follows: • Transient occupancy tax increased from $23.02 million in 2024 to $23.88 million in 2025, a slight increase of $861.33 thousand. - The City's sales tax increased by $5.99 million from $25.39 million in 2024 to $31.38 million in 2025. The increase showing some early revenue growth from the sales tax measure passed by voters in November, 2024 and that went into effect in April, 2025. In 2025, the City's investment earnings saw a decrease of $1.40 million from prior year, reflecting a less favorable interest rate environment from prior year as rates stabilized and began to ease from the elevated levels that drove strong earnings in prior year. The City continued to utilize multiple investment vehicles throughout the year, taking advantage of high interest rates available in short-term investment pools such as the Local Agency Investment Fund (LAIF), and the California Asset Management Program (CAMP), along with the reinvestment of maturing investments into long-term investment products. • Charges for services grew by $2.58 million from $39.35 million in 2024 to $41.93 million in 2025. - Operating contributions and grants recognized an increase of $526.15 thousand, while Capital contributions and grants decreased by $12.60 million, from $17.31 million in 2024 to $4.71 million in 2025. This decrease was largely due to Capital Contributions and Grants received in the prior year for Housing and Redevelopment and Library functions not received in this fiscal year. ===== PAGE 33 ===== Total governmental expenses increased from $167.64 million in 2024 to $142.13 million in 2025, a decrease of $25.51 million. Factors that contributed to the changes in expenses are as follows: - Expenses in housing and redevelopment decreased from $27.87 million in 2024 to $9.72 million in 2025, a decrease of $18.15 million. Public safety expenses increased by $3.4 million, from $43.64 million in 2024 to $47.04 million in 2025, mainly related to increases in costs for contracted police and fire protection services. Parks, recreation, and culture saw a decrease in expenses of $3.45 million, from $20.32 million in 2024 to $16.87 million in 2025. The following schedule represents the net cost of providing services:

	Governmental Activities Net (Expense) Revenue (In Millions)
	2025	2024
General government	($30.77)	($40.64)
Housing and redevelopment	0.29	(8.65)
Public safety	(23.02)	(21.52)
Parks, recreation and culture	(12.25)	(14.70)
Public works	(16.30)	(18.82)
Library	(2.93)	3.39
Interest on long term debt	(0.06)	(0.15)
Total	($84.98)	($101.09)

## Business-type Activities In the business-type activities, total revenues increased by 2.35 percent from $14.06 million to $14.39 million, a $330 thousand increase. The main factor for the change in total revenues was the decrease in Capital Contributions and Grants revenues and increase in charges for services compared to prior year. The Parkview Office Complex revenues increased slightly from $1.22 million in 2024 to $1.33 million in 2025 due to annual lease adjustments. ===== PAGE 34 ===== Operating expenses for business-type activities increased by $1.84 million from $14.33 million to $16.17 million. The majority of the increase is related to the increase in maintenance and operations costs for the Parkview Office Complex of $1.99 million compared to prior year. ## THE CITY'S FUNDS On page 43, the governmental funds balance sheet is shown. The combined fund balance of $350.73 million increased $4.43 million from $346.30 million. This total includes the General Fund fund balance of $120.71 million, which decreased by $5.65 million from the prior year. The City's General Fund fund balance has a non-spendable balance of $2.67 million, committed balance of $63.32 million, assigned balance of $18.34 million, and $36.38 million of unassigned fund balance. The increase in the General Fund's fund balance was due to increases in sales tax and cash and investments balances coupled with reductions in accounts payable liabilities from prior year. Other major fund balance changes are noted below: - The Prop A Fire Tax Special Revenue Fund: The fund balance increased by $4.88 million. - The Housing Asset Fund: The fund had an increase of $1.83 million, mainly due to increases in its Loan asset balances during the fiscal year. • The Housing Authority Fund: The fund balance had a slight increase of $1.27 million. • Restricted Capital Project Fund: The fund balance decreased $3.15 million from $47.23 million in 2024 to $44.36 million in 2025. • The remaining increase of $4.97 million is spread across multiple non-major funds. More detailed information about the combined fund balance reserves is presented in Note 16 to the financial statements. ## General Fund Budgetary Highlights Based upon recommendations from the staff, the City Council revised the budget several times during the year. Adjustments were made on a monthly basis as City staff requested additional appropriations to cover the cost of projects that either had change orders for additional work, or were underestimated. At mid-year, some adjustments were also requested to better meet departmental demands and adjust for any revenue fluctuations. At year-end, budgets were adjusted for unanticipated approved expenditures. All amendments that either increase or decrease appropriations are approved by the City Council. For the City's General Fund, the actual ending revenues of $96.80 million were $7.61 million more than the final budgeted revenues of $89.19 million. Sales and transient occupancy taxes continue to be the top two revenue generators for the City, totaling $55.26 million or 57.09 percent of the total General Fund actual revenues. The original budgeted taxes was $72.47 million compared to the final budget of $76.03 million, an increase of $3.56 million. The City increase in the final budget was related to better-than-expected increases in sales tax revenues from the passing of Measure G. The General Fund actual ending expenditures of $102.20 million were $9.70 million less than the final budget of $111.90 million. There were changes in the original budget compared to the final budget during the year. The original expenditure budget was $83.06 million compared to the final budget of $111.90 million, a $28.84 million increase. During the year, the following represent the major changes between the original budget and the final budget: the City Clerk, Legal, Finance, Information Technology, Capital Projects, Traffic Safety, and Street Maintenance budgets were increased to accommodate new staff and expanded city services. The budget for transfers out was also increased by $19.86 million. These transfers were mainly to capital project funds to cover upcoming projects. ===== PAGE 35 ===== ## CAPITAL ASSETS AND DEBT ADMINISTRATION ## Capital Assets At the end of 2025, the City had $496.56 million invested in a broad range of capital assets including land, streets, bridges, drainage systems, traffic lights, parks, buildings, artwork, vehicles, golf courses and equipment (See Table 3). This amount represents a net increase (including additions and deductions) of $3.19 million over the prior year restated balance, due mainly to construction in progress additions.

TABLE 3

## CAPITAL ASSETS AT YEAR-END (NET OF DEPRECIATION/AMORTIZATION, IN MILLIONS)

For the years ended June 30, 2025 and 2024

	Governmental Activities		Business-Type Activities		Total
	As Restated					As Restated
	2025	2024	2025	2024	2025	2024
Land	$ 82.70	$ 82.70	$ 53.32	$ 53.30	$ 136.02	$ 136.00
Construction-in-progress	17.61	23.28	-	-	17.61	23.28
Buildings and improvements	86.01	77.10			86.01	77.10
other than buildings			10.89	11.71	10.89	11.71
Machinery and equipment	3.83	3.11	2.76	3.69	6.59	6.79
Infrastructure & right-of-way	236.94	236.06	-	-	236.94	236.06
Lease assets	2.09	1.90	-	-	2.09	1.90
Subscription assets	0.41	0.53	-	-	0.41	0.53
TOTALS	429.59	424.67	66.97	68.70	496.56	493.37

===== PAGE 36 ===== This year's major additions included (in millions):

Buildings	$ 0.01
Improvements other than buildings	0.86
Equipment purchases	0.85
Machinery	0.46
Lease assets	0.53
Subscription assets	0.14

$2.85 The City's fiscal year 2026 adopted capital budget calls for an additional $56.48 million to be spent, plus continuing capital projects of $27.26 million from prior year, with the majority being spent on streets, infrastructure, buildings, parks, and golf course improvements as well as the City's two major ongoing Capital Projects to build a new library facility and Fire Station 102. Projects will be funded with existing bond proceeds or funds that have been designated by an outside party for specific use. The City has adopted a bold capital improvement program to make significant capital improvements throughout the jurisdiction, and to catch up on projects that may have been deferred in the past. More detailed information about the City's capital assets is presented in Note 1h and Note 5 to the financial statements. ## Debt At year-end, the City's governmental activities had $51.53 million in bonds, claims, compensated absences, and pension liability versus $55.56 million last year, a decrease of $4.03 million as shown in Table 4. The major decreases were from the City's the Claims and Judgments Payable liability which went from $3.68 million in 2024 to $0.84 million in 2025, a decrease of $2.84 million.

TABLE 4

## OUTSTANDING DEBT AT YEAR-END (IN MILLIONS) For the years ended June 30, 2025 and 2024

	Governmental Activities		Business-Type Activities		Total
	2025	2024	2025	2024	2025	2024
Compensated absences	$ 2.63	$ 2.67	$ -	$ -	$ 2.63	$ 2.67
Leases payable	2.17	1.98			2.17	1.98
Direct borrowing	-	-	0.14	0.23	0.14	0.23
Subscriptions payable	0.21	0.28	-	-	0.21	0.28
Claims liabilities	0.84	3.68	-	-	0.84	3.68
Special assessments debt with government commitment	0.93	0.98	-	-	0.93	0.98
Limited obligation improvement bonds	0.07	0.09	-	-	0.07	0.09
Net OPEB liability	2.53	1.88	-	-	2.53	1.88
Net pension liability	42.15	44.00	-	-	42.15	44.00
TOTALS	$ 51.53	$ 55.56	$ 0.14	$ 0.23	$ 51.68	$ 55.79

===== PAGE 37 ===== The City was able to meet its current year debt obligations in a timely manner. Bonds that were issued in prior years have been used to finance various capital projects. The City's business-type activities debt decreased by $90 thousand from $0.23 million to $0.14 million. Debt in the business-type activities is for amounts due back to the City for the financing of capital equipment. The City's golf course used a city-funded financing option as an alternative to purchasing golf carts and maintenance equipment from cash flows derived through day-to-day operations. The City's business-type activities were able to meet their current year debt obligation in a timely manner. More detailed information about the City's long-term liabilities is presented in Note 6 through Note 10 to the financial statements. ## ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS In preparing the budget for fiscal year 2026, management and the City Council considered many ongoing economic impacts such as inflation, supply chain constraints, and labor issues associated with contracts. Keeping the well-being and safety of residents, visitors, and businesses as the highest priority, the City Council has maintained funding to sustain current service levels and supported efforts to ensure that much of the deferred maintenance owing to the pandemic is now being addressed. In addition, the City Council established strategic goals and objectives before the creation of the annual budget, which were given the highest priority during the budget development process. The City Council's strategic goals and objectives include both capital and monetary investments to support the City's economic stability. The City's 2025-2026 Financial Plan can be found on the City's website at www.cityofpalmdesert.org. ## CONTACTING THE CITY'S FINANCIAL MANAGEMENT This financial report is designed to provide our residents, taxpayers, customers, investors, and creditors with a general overview of the City's finances and serves as a resource to demonstrate the stewardship and accountability for the public monies it receives. If you have questions about this report or need additional financial information, please contact the Finance Department at (760) 346-0611 or info@cityofpalmdesert.org. ===== PAGE 38 ===== BASIC FINANCIALS ===== PAGE 39 =====

	Primary Government			Component Unit
	Governmental Activities	Business-Type Activities	Total	Palm Desert Recreational Facilities Corporation
ASSETS
Cash and investments	$ 290,819,681	$ 13,300,334	$ 304,120,015	$ 883,712
Receivables:
Accounts	4,727,994	186,633	4,914,627	-
Assessments	956,907	-	956,907	-
Notes	926,000	-	926,000	-
Accrued interest	1,132,338	25,590	1,157,928	-
Loans	22,218,415	-	22,218,415	-
Leases	2,836,447	6,794,837	9,631,284	-
Internal balances	1,598,773	(1,598,773)	-	-
Due from other governments	14,296,135	-	14,296,135	1,640,138
Due from component unit	420,000	1,793,417	2,213,417	-
Deposits	20,000	-	20,000	-
Prepaid costs	1,059,755	38,563	1,098,318	13,072
Inventories	14,825	352,900	367,725	55,502
Land held for resale	61,516	-	61,516	-
Restricted assets:
Cash with fiscal agent	61,177,031	-	61,177,031	-
Capital assets (not being depreciated)	221,567,362	53,318,507	274,885,869	-
Capital assets (net of accumulated depreciation/amortization)	208,023,534	13,648,168	221,671,702	2,351,641
Total assets	831,856,713	87,860,176	919,716,889	4,944,065
DEFERRED OUTFLOWS OF RESOURCES
Pension-related	10,045,197	-	10,045,197	-
OPEB-related	4,837,981	-	4,837,981	-
Total deferred outflows of resources	14,883,178	-	14,883,178	-

(continued) ===== PAGE 40 ===== ## CITY OF PALM DESERT, CALIFORNIA Statement of Net Position (Continued) June 30, 2025

	Primary Government			Component Unit
	Governmental Activities	Business-Type Activities	Total	Palm Desert Recreational Facilities Corporation
LIABILITIES
Accounts payable	$ 13,620,626	$ 982,154	$ 14,602,780	$ 54,390
Accrued liabilities	442,306	295,731	738,037	144,079
Accrued interest	8,494	-	8,494	3,441
Deposits payable	15,510,709	327,594	15,838,303	-
Unearned revenue	4,185,430	26,590	4,212,020	107,201
Noncurrent liabilities:
Due within one year:
Due to component unit	-	1,640,138	1,640,138	-
Financed purchases	-	90,632	90,632	-
Bonds, notes, leases, SBITA, claims, and compensated absences	1,307,795	-	1,307,795	55,142
Due in more than one year:
Due to primary government	-	-	-	2,213,417
Net pension liability	42,151,310	-	42,151,310	-
Net OPEB liability	2,526,627	-	2,526,627	-
Financed purchases	-	53,925	53,925	-
Bonds, notes, leases, SBITA, claims and compensated absences	5,545,162	-	5,545,162	2,366,395
Total liabilities	85,298,459	3,416,764	88,715,223	4,944,065
DEFERRED INFLOWS OF RESOURCES
OPEB-related	777,125	-	777,125	-
Lease-related	2,774,291	6,708,885	9,483,176	-
Total deferred inflows of resources	3,551,416	6,708,885	10,260,301	-
NET POSITION
Net investment in capital assets	426,387,331	66,822,118	493,209,449	-
Restricted:
Capital projects	78,407,517	-	78,407,517	-
Debt service	163,255	-	163,255	-
Low income housing	65,136,622	-	65,136,622	-
Public facilities	9,968,763	-	9,968,763	-
Public safety	27,277,200	-	27,277,200	-
Special programs	3,733,017	-	3,733,017	-
Street related purposes	4,412,243	-	4,412,243	-
Unrestricted	142,404,068	10,912,409	153,316,477	-
Total net position	$ 757,890,016	$ 77,734,527	$ 835,624,543	$ -

===== PAGE 41 =====

		Program Revenues
	Expenses	Charges for Services	Operating Contributions and Grants	Capital Contributions and Grants
Functions/Programs:
Primary government:
Governmental activities:
General government	$ 39,384,397	$ 3,045,889	$ 2,050,249	$ 3,516,959
Public safety	47,044,930	22,620,838	1,346,201	53,474
Housing and redevelopment	9,719,050	9,539,293	439,873	26,079
Parks, recreation and culture	16,867,169	3,605,304	223,049	787,483
Public works	26,114,830	3,117,706	6,368,970	329,717
Library	2,934,418	-	-	-
Interest on long-term debt	64,265	-	-	-
Total governmental activities	142,129,059	41,929,030	10,428,342	4,713,712
Business-type activities:
Parkview Office Complex	3,350,190	1,325,850	-	-
Desert Willow Golf Course	12,823,461	12,633,426	-	79,325
Total business-type activities	16,173,651	13,959,276	-	79,325
Total primary government	$ 158,302,710	$ 55,888,306	$ 10,428,342	$ 4,793,037
Component Units:
Palm Desert Recreational Facilities Corp.	$ 4,875,456	$ 4,540,355	$ 335,101	$ -

General revenues:
Property taxes	Transient occupancy taxes
Sales taxes	Franchise taxes
Other taxes	Use of money and property
Miscellaneous income	Transfers
Total general revenues and transfers
Change in net position
Net position-beginning, as previously reported	Restatement - error correction
Net position-beginning, as restated	Net position-ending

General revenues and transfers:

===== PAGE 42 =====

Net (Expenses) Revenues and Changes in Net Position

Changes in Net Position
Primary Government			Component Unit
Governmental Activities	Business-Type Activities	Total	Recreational Facilities Corporation

$ (30,771,300)	$ -	$ (30,771,300)	$ -
(23,024,417)	-	(23,024,417)	-
286,195	-	286,195	-
(12,251,333)	-	(12,251,333)	-
(16,298,437)	-	(16,298,437)	-
(2,934,418)	-	(2,934,418)	-
(64,265)	-	(64,265)	-
(85,057,975)	-	(85,057,975)	-
-	(2,024,340)	(2,024,340)	-
-	(110,710)	(110,710)	-
-	(2,135,050)	(2,135,050)	-
(85,057,975)	(2,135,050)	(87,193,025)	-
-	-	-	-
16,056,980	-	16,056,980	-
23,881,245	-	23,881,245	-
31,379,891	-	31,379,891	-
3,729,388	-	3,729,388	-
2,251,014	-	2,251,014	-
17,699,273	720,874	18,420,147	-
2,100,299	-	2,100,299	-
356,665	(356,665)	-	-
97,454,755	364,209	97,818,964	-
12,396,780	(1,770,841)	10,625,939	-
733,146,189	79,505,368	812,651,557	-
12,347,047	-	12,347,047	-
745,493,236	79,505,368	824,998,604	-
$ 757,890,016	$ 77,734,527	$ 835,624,543	$ -

===== PAGE 43 =====

	Special Revenue Funds
	General Fund	Prop A Fire Tax	Housing Asset Fund	Housing Authority
ASSETS
Cash and investments	$ 114,867,403	$ 27,910,884	$ 32,063,178	$ 17,170,040
Receivables:
Accounts	2,857,192	758,434	256,918	420,060
Assessments	-	-	-	-
Notes	926,000	-	-	-
Accrued interest	628,935	-	267,895	10
Loans	14,978	-	21,413,813	-
Leases	2,836,447	-	-	-
Deposits	-	-	-	-
Prepaid costs	1,003,363	-	600	-
Due from other governments	11,550,021	1,481,013	-	-
Due from other funds	84,095	-	-	-
Advances to other funds	709,000	-	-	-
Inventories	3,642	-	-	-
Land held for resale	-	-	61,516	-
Due from component unit	420,000	-	-	-
Restricted assets:
Cash with fiscal agent	-	121,720	-	1,827,736
Total assets	$ 135,901,076	$ 30,272,051	$ 54,063,920	$ 19,417,846
LIABILITIES
Accounts payable	$ 5,960,732	$ 3,040,181	$ 15,333	$ 415,796
Accrued Payroll	359,498	-	-	82,808
Unearned revenue	-	-	-	25,029
Deposits received	3,661,502	-	-	523,928
Due to other funds	-	-	-	-
Advances from other funds	-	-	-	-
Total liabilities	9,981,732	3,040,181	15,333	1,047,561
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue	2,439,590	-	256,118	-
Leases	2,774,291	-	-	-
Total deferred inflows of resources	5,213,881	-	256,118	-
FUND BALANCES
Nonspendable	2,673,405	-	600	-
Restricted	-	27,231,870	53,769,292	6,494,797
Committed	63,315,645	-	-	11,875,488
Assigned	18,337,816	-	-	-
Unassigned	36,378,597	-	-	-
Total fund balances	120,705,463	27,231,870	53,769,892	18,370,285
Total liabilities and fund balances	$ 135,901,076	$ 30,272,051	$ 54,041,343	$ 19,417,846

===== PAGE 44 =====

	Capital Projects Funds		Total Nonmajor Funds	Total Governmental Funds
	Restricted Capital Project Fund		Total Nonmajor Funds	Total Governmental Funds
ASSETS
Cash and investments	$ 43,538	$ 87,177,472	$ 279,232,515
Receivables:
Accounts	-	435,390	4,727,994
Assessments	-	956,907	956,907
Notes	-	-	926,000
Accrued interest	202,866	32,632	1,132,338
Loans	-	789,624	22,218,415
Leases	-		2,836,447
Deposits	-	20,000	20,000
Prepaid costs	553	55,239	1,059,755
Due from other governments	-	1,265,101	14,296,135
Due from other funds	-	-	84,095
Advances to other funds	-	1,598,773	2,307,773
Inventories	-	11,183	14,825
Land held for resale	-	-	61,516
Due from component unit	-	-	420,000
Restricted assets:
Cash with fiscal agent	59,227,518	57	61,177,031
Total assets	$ 59,474,475	$ 92,342,378	$ 391,471,746
LIABILITIES
Accounts payable	$ 214,520	$ 3,689,802	$ 13,336,364
Accrued Payroll	-	-	442,306
Unearned revenue	14,901,154	584,526	15,510,709
Deposits received	-	-	4,185,430
Due to other funds	-	84,095	84,095
Advances from other funds	-	709,000	709,000
Total liabilities	15,115,674	5,067,423	34,267,904
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue	-	985,346	3,681,054
Leases	-	-	2,774,291
Total deferred inflows of resources	-	985,346	6,455,345
FUND BALANCES
Nonspendable	1,106	75,239	2,750,350
Restricted	44,357,695	57,244,963	189,098,617
Committed	-	1,966,005	77,157,138
Assigned	-	27,003,402	45,341,218
Unassigned	-	-	36,378,597
Total fund balances	44,358,801	86,289,609	350,725,920
Total liabilities and fund balances	$ 59,474,475	$ 92,342,378	$ 391,449,169

===== PAGE 45 ===== ## UNIDALDESERT ## This page intentionally left blank ===== PAGE 46 =====

Amounts reported for governmental activities in the Statement of Net Position (in the different because:
Total fund balances - governmental funds	$ 350,725,920
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds.	426,584,364
Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.
Deferred outflows-pension related	$ 10,045,197
Deferred outflows-OPEB related	4,837,981
Deferred inflows-OPEB related	(777,125)
Total deferred outflows and inflows related to postemployment benefits	14,106,053
Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds.
Long-term receivables	3,681,054
Total other long-term assets	3,681,054
Internal service funds provide services to other funds on a cost-reimbursement basis. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities.	11,697,227
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.
Bonds payable	(995,000)
Notes payable	(841,671)
Leases and SBITA payable	(2,381,500)
Accrued interest payable on long-term debt	(8,494)
Net pension liability	(42,151,310)
Net OPEB liability	(2,526,627)
Total long-term liabilities	(48,904,602)
Net position of governmental activities	$ 757,890,016

===== PAGE 47 =====

	Special Revenue Funds
	General Fund	Prop A Fire Tax	Housing Asset Fund	Housing Authority
REVENUES
Taxes	$ 81,825,605	$ 13,045,657	$ -	$ -
Special assessments collected	-	2,188,202	-	-
Licenses and permits	1,410,552	-	-	-
Intergovernmental revenues	1,969,341	1,442,674	-	-
Fees and rentals	134,823	-	-	9,402,683
Charges for services	2,168,157	4,424,656	68,979	-
Investment earnings	5,803,145	1,419,450	1,786,096	776,883
Fines and forfeitures	150,788	-	-	-
Miscellaneous	841,201	-	37,995	97,025
Total revenues	94,303,612	22,520,639	1,893,070	10,276,591
EXPENDITURES
Current:
General government	32,274,671	-	-	-
Public safety	26,030,163	18,941,495	-	-
Parks, recreation and culture	6,287,524	-	-	-
Public works	6,481,449	-	-	-
Housing	-	-	52,392	8,623,482
Library	-	-	-	-
Capital outlay	252,264	3,701,001	12,500	-
Debt service:
Principal	240,200	-	-	-
Interest	8,991	-	-	-
Total expenditures	71,575,262	22,642,496	64,892	8,623,482
Excess (deficiency) of revenues
over (under) expenditures	22,728,350	(121,857)	1,828,178	1,653,109
OTHER FINANCING SOURCES (USES)
Transfers in	2,491,425	5,000,000	-	-
Transfers out	(31,008,583)	-	-	(380,542)
Lease and subscription arrangements	140,618	-	-	-
Total other financing sources (uses)	(28,376,540)	5,000,000	-	(380,542)
Net change in fund balances	(5,648,190)	4,878,143	1,828,178	1,272,567
Fund balances-beginning, as originally reported	126,353,653	22,353,727	51,941,714	17,097,718
Restatements - correction of error	-	-	-	-
Fund balances-beginning, as restated	126,353,653	22,353,727	51,941,714	17,097,718
Fund balances-ending	$ 120,705,463	$ 27,231,870	$ 53,769,892	$ 18,370,285

===== PAGE 48 =====

	Capital Projects Funds		Total Governmental Funds
	Restricted Capital Project Fund	Total Non-Major Funds
REVENUES
Taxes	$ -	$ 5,048,819	$ 99,920,081
Special assessments collected	-	1,669,590	3,857,792
Licenses and permits	-	460,016	1,870,568
Intergovernmental revenues	-	4,706,974	8,118,989
Fees and rentals	-	329,266	9,866,772
Charges for services	-	4,121,682	10,783,474
Investment earnings	2,775,712	4,524,646	17,085,932
Fines and forfeitures	-	1,394	152,182
Miscellaneous	-	275,117	1,251,338
Total revenues	2,775,712	21,137,504	152,907,128
EXPENDITURES
Current:
General government	5,672	3,063,470	35,343,813
Public safety	243,565	177,617	45,392,840
Parks, recreation and culture	-	9,129,088	15,416,612
Public works	243,752	5,899,418	12,624,619
Housing	-	847,134	9,523,008
Library	-	2,934,418	2,934,418
Capital outlay	5,434,822	14,464,131	23,864,718
Debt service:
Principal	-	379,046	619,246
Interest	-	102,818	111,809
Total expenditures	5,927,811	36,997,140	145,831,083
Excess (deficiency) of revenues
over (under) expenditures	(3,152,099)	(15,859,636)	7,076,045
OTHER FINANCING SOURCES (USES)
Transfers in	-	22,418,897	29,910,322
Transfers out	-	(2,115,140)	(33,504,265)
Lease and subscription arrangements	-	529,792	670,410
Total other financing sources (uses)	-	20,833,549	(2,923,533)
Net change in fund balances	(3,152,099)	4,973,913	4,152,512
Fund balances-beginning, as originally reported	47,233,177	81,315,696	346,295,685
Restatements - correction of error	277,723	-	277,723
Fund balances-beginning, as restated	47,510,900	81,315,696	346,573,408
Fund balances-ending	$ 44,358,801	$ 86,289,609	$ 350,725,920

===== PAGE 49 ===== ## UNIDALDESERT This page intentionally left blank ===== PAGE 50 =====

Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - total governmental funds:		$ 4,152,512
Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period.
Capital outlay	$ 16,450,140
Depreciation/amortization expense	(11,662,520)
Total adjustment		4,787,620
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
Earned but unavailable grant revenues	809,755
Total adjustment		809,755
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
Net change in claims and judgments for the current period	2,833,669
Subscriptions and leases issued	(670,410)
Principal payments	619,245
Total adjustment		2,782,504
Internal service funds provide services to other funds on a cost-reimbursement basis. The net revenue of certain activities of internal service funds is reported with governmental activities.		3,066,334
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.
Accrued interest on long-term debt	47,544
Changes in pension liabilities and related deferred outflows and inflows of resources	(1,841,182)
Changes in OPEB liabilities and related deferred outflows and inflows of resources	(1,408,307)
Total adjustment		(3,201,945)
Change in net position of governmental activities		$ 12,396,780

===== PAGE 51 =====

	Business-Type Activities			Governmental Activities
	Parkview Office Complex	Desert Willow Golf Course	Total Enterprise Funds	Internal Service Funds
ASSETS
Current assets:
Cash and investments	$ 6,823,245	$ 6,477,089	$ 13,300,334	$ 11,587,166
Receivables (net of uncollectibles):
Accounts	73,963	112,670	186,633	-
Leases	953,698	-	953,698	-
Due from other governments	25,590	-	25,590	-
Prepaid costs	160	38,403	38,563	-
Inventories	-	352,900	352,900	-
Due from component unit	-	1,793,417	1,793,417	-
Total current assets	7,876,656	8,774,479	16,651,135	11,587,166
Noncurrent:
Leases receivable	5,841,139	-	5,841,139	-
Capital assets (not being depreciated/amortized)	-	53,318,507	53,318,507	11,821
Capital assets (net of accumulated depreciation/amortization)	4,657,919	8,990,249	13,648,168	2,994,711
Total noncurrent assets	10,499,058	62,308,756	72,807,814	3,006,532
Total assets	18,375,714	71,083,235	89,458,949	14,593,698
LIABILITIES
Current liabilities:
Accounts payable	65,486	916,668	982,154	261,685
Accrued liabilities	-	295,731	295,731	-
Unearned revenue	3,031	324,563	327,594	-
Deposits received	26,590	-	26,590	-
Due to component unit	-	1,640,138	1,640,138	-
Financed purchases	-	90,632	90,632	-
Compensated absences	-	-	-	500,000
Total current liabilities	95,107	3,267,732	3,362,839	761,685
Noncurrent liabilities:
Financed purchases	-	53,925	53,925	-
Advances from other funds	-	1,598,773	1,598,773	-
Compensated absences	-	-	-	2,134,786
Total noncurrent liabilities	-	1,652,698	1,652,698	2,134,786
Total liabilities	95,107	4,920,430	5,015,537	2,896,471
DEFERRED INFLOWS OF RESOURCES
Leases	6,708,885	-	6,708,885	-
Total deferred inflows of resources	6,708,885	-	6,708,885	-
NET POSITION
Net investment in capital assets	4,657,919	62,164,199	66,822,118	3,006,532
Unrestricted	6,913,803	3,998,606	10,912,409	8,690,695
Total net position	$ 11,571,722	$ 66,162,805	$ 77,734,527	$ 11,697,227

===== PAGE 52 =====

	Business-Type Activities		Total Enterprise Funds	Governmental Activities
	Parkview Office Complex	Desert Willow Golf Course	Total Enterprise Funds	Internal Service Funds
OPERATING REVENUES
Fees and rentals	$ 1,325,850	$ 10,633,952	$ 11,959,802	$ -
Miscellaneous	-	333,475	333,475	452,291
Merchandise sales	-	1,665,999	1,665,999	-
Total operating revenues	1,325,850	12,633,426	13,959,276	452,291
OPERATING EXPENSES
General and administrative	97,406	3,330,916	3,428,322	178,700
Cost of merchandise	-	661,088	661,088	-
Maintenance and operations	2,934,138	6,728,193	9,662,331	431,339
Depreciation/amortization	318,646	1,692,354	2,011,000	726,526
Total operating expenses	3,350,190	12,412,551	15,762,741	1,336,565
Operating income (loss)	(2,024,340)	220,875	(1,803,465)	(884,274)
NONOPERATING REVENUES (EXPENSES)
Interest income	531,705	189,169	720,874	-
Interest expense and fiscal charges	-	(75,809)	(75,809)	-
Contributions to component unit	-	(335,101)	(335,101)	-
Total nonoperating revenues (expenses)	531,705	(221,741)	309,964	-
Income (loss) before capital contributions and transfers	(1,492,635)	(866)	(1,493,501)	(884,274)
Capital contributions	-	79,325	79,325	-
Transfers in	19,620	-	19,620	3,950,608
Transfers out	(376,285)	-	(376,285)	-
Change in net position	(1,849,300)	78,459	(1,770,841)	3,066,334
Net position - beginning	13,421,022	66,084,346	79,505,368	8,630,893
Net position - ending	$ 11,571,722	$ 66,162,805	$ 77,734,527	$ 11,697,227

===== PAGE 53 =====

	Business-Type Activities			Governmental Activities
	Parkview Office Complex	Desert Willow Golf Course	Totals	Internal Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers	$ 1,264,401	$ 12,811,175	$ 14,075,576	$ 452,291
Payments to suppliers and service providers	(3,114,199)	(10,998,335)	(14,112,534)	(192,805)
Payments to employees for salaries and benefits	-	(771,259)	(771,259)	(216,601)
Net cash provided by (used for) operating activities	(1,849,798)	1,041,581	(808,217)	42,885
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds	19,620	-	19,620	3,950,608
Transfers to other funds	(376,285)	-	(376,285)	-
Payments to other funds on interfund borrowings	-	(500,000)	(500,000)	-
Net cash provided by (used for) noncapital financing activities	(356,665)	(500,000)	(856,665)	3,950,608
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions	-	79,325	79,325	-
Acquisition and construction of capital assets	-	(275,254)	(275,254)	(851,883)
Principal paid on capital debt	-	(88,395)	(88,395)	-
Interest paid on capital debt	-	(75,809)	(75,809)	-
Net cash provided by (used for) capital and related financing activities	-	(360,133)	(360,133)	(851,883)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments	531,705	189,169	720,874	-
Net cash provided by (used for) investing activities	531,705	189,169	720,874	-
Net increase (decrease) in cash and cash equivalents	(1,674,758)	370,617	(1,304,141)	3,141,610
Cash and cash equivalents-beginning	8,498,003	6,106,472	14,604,475	8,445,556
Cash and cash equivalents-ending	$ 6,823,245	$ 6,477,089	$ 13,300,334	$ 11,587,166

===== PAGE 54 =====

	Business-Type Activities			Governmental Activities
	Parkview Office Complex	Desert Willow Golf Course	Totals	Internal Service Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
Operating income (loss)	$ (2,024,340)	$ 220,875	$ (1,803,465)	$ (884,274)
Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:
Depreciation/amortization expense	318,646	1,692,354	2,011,000	726,526
(Increase) decrease in accounts receivable	(39,797)	114,743	74,946	-
(Increase) decrease in leases receivable	4,631	-	4,631	-
(Increase) decrease in inventories	-	(51,218)	(51,218)	-
(Increase) decrease in prepaid items	(160)	(334,263)	(334,423)	-
Increase (decrease) in accounts payable	(82,495)	107,343	24,848	238,534
Increase (decrease) in accrued liabilities	-	29,170	29,170	-
Increase (decrease) in deposits payable	(26,283)	63,006	36,723	-
Increase (decrease) in compensated absences	-	(800,429)	(800,429)	-
Increase (decrease) in net pension liability	-	-	-	(37,901)
Total adjustments	174,542	820,706	995,248	927,159
Net cash provided by (used for) operating activities	$ (1,849,798)	$ 1,041,581	$ (808,217)	$ 42,885

===== PAGE 55 =====

	Private Purpose Trust Funds	Custodial Funds
ASSETS
Pooled cash and investments	$ 824,518	$ 8,570,033
Receivables:
Assessments	-	42,707,169
Accrued interest	5,567	649
Due from other governments	-	24,177
Prepaid costs	1,035,520	-
Restricted assets:
Cash and investments with fiscal agents	29,592,762	3,878,696
Capital assets, not being depreciated	15,939,958	-
Total assets	47,398,325	55,180,724
LIABILITIES
Accounts payable	608,792	1,525
Accrued interest	1,440,863	-
Deposits payable	34,037	42,707,169
Due to external parties/other agencies	-	9,239,582
Long-term liabilities:
Long-term debt due in one year	14,270,000	-
Long-term debt due in more than one year	114,068,740	-
Total liabilities	130,422,432	51,948,276
DEFERRED INFLOWS OF RESOURCES
Leases	124,608	-
Total deferred inflows of resources	124,608	-
NET POSITION
Restricted for other purposes	-	3,232,448
Unrestricted	(83,148,715)	-
Total net position	$ (83,148,715)	$ 3,232,448

===== PAGE 56 =====

	Private Purpose Trust Funds	Custodial Funds
ADDITIONS
Contributions	$-	$ 979,824
Investment income	55,995	362,833
Taxes	20,297,365	-
Intergovernmental	-	4,548,820
Total additions	20,353,360	5,891,477
DEDUCTIONS
Administrative expenses	-	194,425
Contractual services	760,816	1,013,039
Interest expense	5,031,830	1,725,408
Payments to bondholders	-	2,820,000
Total deductions	5,792,646	5,752,872
Net increase (decrease) in fiduciary net position	14,560,714	138,605
Net position-beginning	(97,709,429)	3,093,843
Net position-ending	$(83,148,715)	$ 3,232,448

===== PAGE 57 ===== ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ### A. Description of The Reporting Entity The City of Palm Desert was originally incorporated on November 26, 1973, as a General Law City. In December 1997, Measure LL was enacted following a vote by Palm Desert residents, which adopted a City Charter. The City operates under a Council-Manager form of government and provides the following services: public safety (police and fire), highways and streets, public improvements, community development (planning, building and zoning) and general administrative services. The City has defined its reporting entity in accordance with accounting principles generally accepted in the United States of America which provides guidance for determining which governmental activities, organizations and functions should be included in the reporting entity. The Basic Financial Statements present information on the activities of the reporting entity, which include the City of Palm Desert (the primary government) and its component units, entities for which the government is considered financially accountable. Accounting principles generally accepted in the United States of America require that the component units be separated into blended or discretely presented units for reporting purposes. The following criteria were used in determination of blended component units: appointment of the governing board and fiscal dependence. Although legally separate entities, blended component units are, in substance, part of the City's operations. Therefore, they are reported as part of the primary government. Discretely presented component units are reported in a separate column in the basic financial statements to emphasize that they are legally separate from the City. ## Blended Component Units Following are descriptions of legally separate component units for which the City is financially accountable that are blended with the Primary Government. The governing bodies of these component units are substantially the same with operational responsibility as the City and provides a financial benefit. The Palm Desert Housing Authority (Housing Authority) was established by the City Council in January 1998, and is responsible for the administration of providing affordable housing in the City. The Housing Authority transactions are reported in the governmental funds balance sheet as a major fund. The Palm Desert Financing Authority (Financing Authority) was formed on January 26, 1989. The purpose of the Financing Authority is to issue debt and loan the proceeds to the City and Agency. The Financing Authority's capital related transactions are reported in the governmental fund financial statements in the capital projects funds, and the collection of assessments and payments of debt service is recorded in the fiduciary funds. The City Council of Palm Desert is the governing body for the Housing Authority and Financing Authority. Separate financial statements are not issued for the Housing Authority and Financing Authority. ## Discretely Presented Component Unit The Palm Desert Recreational Facilities Corporation (Corporation) was incorporated on February 25, 1997. The purpose of the Corporation is to lease, operate and manage a restaurant and bar in the Desert Willow Golf Course in Palm Desert, California. The Board of Directors of the Corporation appoints an executive director to administer operations. The Corporation is in a separate column to emphasize that it is legally separate from the City and is financially accountable to the City. The two-member board governing the Corporation is appointed by the City Council, the City has authority to approve the Corporation's budget, and the City must approve any debt issued. Complete financial statements of the Corporation can be obtained from the City's administrative offices. ===== PAGE 58 ===== ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ### B. Basis of Presentation ## Government-Wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Interfund services provided and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Expenses reported for functional activities include allocated indirect expenses. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. ## Fund Financial Statements The accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, deferred inflows of resources, fund equity, revenues and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operation fund of the City or meets the following criteria: a. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of resources, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10% of the corresponding total for all funds of that category or type; and; b. Total assets plus deferred outflows of resources, liabilities plus deferred inflows of resources, revenues or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5% of the corresponding total for all governmental and enterprise funds combined; and; c. The government has determined that a fund is important to the financial statement user. The funds of the financial reporting entity are described below: ## Governmental Fund Types General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue resources (other than major capital projects) that are legally restricted to expenditures for specified purposes. ===== PAGE 59 ===== ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term obligation principal, interest and related costs. ## Proprietary Fund Types Enterprise Funds - The Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the City Council is that the costs (expenses including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges. The Primary Government's Enterprise funds consist of the Parkview Office Complex and the Desert Willow Golf Course. Desert Willow Golf Course is operated by a management company. The discretely presented Component Unit's fund consists of the Palm Desert Recreational Facilities Corporation, also operated by a management company. Internal Service Funds - The Internal Service Funds account for financial transactions related to replacement of City-owned vehicles and equipment and to fund compensated absences. These services are provided to other departments or agencies of the City on a cost reimbursement basis. ## Fiduciary Fund Types ## Private-Purpose Trust Fund The Successor Agency to the Palm Desert Redevelopment Agency Private Purpose Trust Fund is used to account for the activities of the Successor Agency to the Palm Desert Redevelopment Agency. ## Custodial Funds The Custodial, Special Assessment and Treasurers 1911 Bond Act Funds are used to account for assets held by the City in a custodial capacity as a trustee. These assets include deposits placed with the City by individuals, as well as deposits from assessment district's property owners. These deposits are reduced by payments to individuals. The City's Retiree Service Stipend Fund is used to account for assets held to pay for the retiree service stipend. The Treasures 1991 Bond Act Fund is used to account for assets held for the Bond Act. The major funds are as follows: ## Governmental Funds The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The Prop A Fire Tax Special Revenue Fund is used to account for all revenues derived from tax collected within the City for upgrading fire protection and prevention. Its use is restricted to obtaining, furnishing, operating and maintaining fire protection and prevention services (currently under contract with Riverside County Fire Department) equipment or apparatus. This fund is reported as a major fund because the tax collected is a voter approved measure. The Housing Asset Special Revenue Fund is used to account for any funds generated from housing assets of the former Redevelopment Agency to be used for projects that benefit low and moderate income families. ===== PAGE 60 ===== ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Housing Authority Special Revenue Fund is used to account for revenues and expenditures related to rental units owned by the Housing Authority, established in January 1998. This fund is determined to be important to the users of the financial statements and determined to be a major fund. The Restricted Capital Project Fund is used to account for the cost of city owned properties that will either be sold or for the construction of public facilities, and the proceeds of bond funds for capital related properties. ## Proprietary Fund The Parkview Office Complex Fund is used to account for rent received from the City owned office complex. The Desert Willow Golf Course Fund is used to account for the fees collected and expenses incurred in connection with operating the municipal golf course in the City of Palm Desert. ### C. Measurement Focus and Basis of Accounting Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied. On the government-wide Statement of Net Position and the Statement of Activities, both governmental and business-like activities are presented using the economic resources measurement focus. The accounting objectives of the economic measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position and cash flows. All assets, deferred outflows of resources, liabilities and deferred inflows of resources (whether current or noncurrent) associated with their activities are reported. In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used as appropriate: 1. All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets, deferred outflows of resources, current liabilities and deferred inflows of resources are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. 2. The proprietary fund and private purpose trust fund and custodial funds utilize an “economic resources” measurement focus. Proprietary fund and private purpose trust fund equity and custodial funds are classified as net position. ## Basis of Accounting In the government-wide Statement of Net Position and Statement of Activities, both governmental and business-like activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred, or economic asset used. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. ===== PAGE 61 ===== ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenues that are susceptible to accrual include property taxes and special assessments that are levied for and due for the fiscal year and collected within 60 days after year-end. Licenses, permits, fines, forfeits, charges for services and miscellaneous revenues are recorded as governmental fund type revenues when received in cash because they are not generally measurable until actually received. Revenue from taxpayer assessed taxes, such as sales taxes, are recognized in the accounting period in which they became both measurable and available to pay liabilities of the current period. Grants and similar items are recognized as soon as all eligibility requirements imposed by the provider have been met. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Interfund activity has been eliminated from the general government function for the government-wide financial statements except for charges between the government's Desert Willow Golf Course and Parkview Office Complex funds and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues for the various functions considered. The accrual basis of accounting is followed by the proprietary fund and private purpose trust fund. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred, or economic assets are used. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing goods and services in connection with a proprietary fund's principal ongoing operations. The principal revenue of the Desert Willow Golf Course and Parkview Office Complex Enterprise Funds are charges to customers for use of the golf course and rental fees. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. ### D. Appropriations Limit Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates, revised fee schedules or other refund arrangements. For the fiscal year ended June 30, 2025, proceeds of taxes did not exceed appropriations. ### E. Cash and Investments For purposes of the statement of cash flows, the City has defined cash and investments to include cash on hand, demand deposits, investments held in various instruments, and investments held in the California Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP) and Riverside County Treasurer's Pooled Investment Fund. ### F. Investments Investments are reported in the accompanying financial statements at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments. ===== PAGE 62 ===== ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ### G. Property Held for Resale The land held for resale is recorded in the Housing Asset Fund as property held for resale at the lower of cost or market. At June 30, 2025, the cost of the property held for resale for various housing properties in Palm Desert totaled $61,516. ### H. Capital Assets and Depreciation Capital assets, which include property, equipment, and infrastructure assets (e.g., roads, traffic signals, drainage systems and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are defined by the City as assets with an initial cost above the amounts described in the table below and an estimated life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The City has reported general infrastructure assets acquired in prior and current years. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:

Asset Type	Capitalization Threshold	Useful Life	Subject to Depreciation?
Land	$ -	Infinite	No
Buildings	$ 100,000	20-50 Years	Yes
Infrastructure	$ 100,000	10-50 Years	Yes
Improvements Other than Buildings	$ 100,000	20-50 Years	Yes
Equipment, Furniture & Vehicles	$ 10,000	3-15 Years	Yes
Intangible Assets - Permanent Easements	$ 10,000	Infinite	No
Intangible Assets - Temporary Easements	$ 10,000	5 Years	Yes
City-Owned or Developed Software	$ 100,000	5 Years	Yes
Works of Art/Historical Treasures	$ 10,000	Infinite	No
Construction in Progress	$ -	N/A	No
Lease and SBITA Assets	$ 10,000	5 Years	No

### I. Inventories, Prepaid Costs and Deposits Inventory in the amount of $352,900 and $55,502, for the Desert Willow Golf Course Enterprise Fund (Primary Government) and Palm Desert Recreational Facilities Corporation (Component Unit), respectively, are reported at lower of cost or market. These inventories are held for resale. Inventory in the amount of $14,825 in the Governmental Funds are also reported at lower cost or market. Inventory and prepaid costs are recorded as an expenditure when consumed rather than purchased. Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid costs in the government-wide and fund financial statements. ===== PAGE 63 ===== ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ### J. Property Tax Calendar Property taxes are assessed and collected each fiscal year according to the following property tax calendar:

Lien date:	January 1
Levy date:	July 1 to June 30
Due date:	November 1 - 1st Installment
	March 1 - 2nd Installment
Delinquent date:	December 10 - 1st Installment
	April 10 - 2nd Installment

Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on complex formulas prescribed by state statutes. The City accrues only those taxes, which are received within 60 days after the year-end. The City is a participant in the Teeter Plan under the California Revenue and Taxation Code. The County of Riverside has responsibility for the collection of delinquent taxes and the City receives 100% of the levy. ### K. Leases ## Lessee The City is a lessee for a noncancellable lease of buildings and equipment. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $10,000 or more. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position. ## Lessor The City is a lessor for several noncancellable lease of a building. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements. ===== PAGE 64 ===== ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. ### L. Subscription-Based Information Technology Arrangements The City is a subscriber for several noncancellable subscription of information technology services. The City recognizes a subscription liability and an intangible right-to-use subscription asset (subscription asset) in the government-wide financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more. At the commencement of a subscription, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to subscriptions include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments. The City uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscriptions. The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments that the City is reasonably certain to exercise. The City monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability. Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position. ===== PAGE 65 ===== ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ### M. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category: Deferred outflows related to pensions and OPEB. This amount is equal to employer contributions made after the measurement date of the net pension liability and net OPEB liability/(asset). Deferred outflows related to pensions and OPEB resulting from the difference in projected and actual earnings on investments of the pension plan and OPEB fiduciary net position. These amounts are amortized over five years. Deferred outflows of resources related to pensions and OPEB arising from a change in assumptions and differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions and OPEB through the plan. In addition to liabilities, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has the following items that qualify for reporting in this category: - Deferred amount on refunding. A deferred amount on refunding results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred inflows from unavailable revenue, which arises under a modified accrual basis of accounting is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from the following sources: rent, investment income, grants, notes receivables collections and reimbursements. These amounts are unavailable and recognized as an inflow of resources in the period that the amounts become available. - Deferred inflows related to pensions and OPEB for differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions and OPEB through the plan. Deferred inflows from OPEB resulting from changes in assumptions. These amounts are amortized over a closed period equal to the average expected remaining service lives of all employees that are provided with OPEB through the plan. Deferred inflows from lease related items for the amount of the lease receivable plus any lease payments related to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the commencement of the lease term. ===== PAGE 66 ===== ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ### N. Compensated Absences The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled (for example paid in cash to the employee or payment to an employee flex spending account) during or upon separation from employment. Based on the criteria listed, two types of leave qualify for liability recognition for compensated absences – vacation and sick leave. The liability for compensated absences is reported as incurred in the government-wide and proprietary fund financial statements. A liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements. The liability for compensated absences includes salary-related benefits, where applicable. ## Vacation The City's policy permits employees to accumulate earned but unused vacation benefits, which are eligible for payment at the employee's current pay rate upon separation from employment. ## Sick Leave The City's policy permits employees to accumulate earned but unused sick leave. All sick leave lapses when employees leave the employee of the City and, upon separation from service, no monetary obligation exists. However, a liability for estimated value of sick leave that will be used by employees as time off is included in the liability for compensated absences. ### O. Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the District's California Public Employees' Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. GASB Statement No. 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used. Valuation Date June 30, 2023 Measurement Date June 30, 2024 Measurement Period July 1, 2023 to June 30, 2024 ### P. Other Post-Employment Benefits (OPEB) For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and the OPEB expense have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: Valuation Date June 30, 2023 Measurement Date June 30, 2024 Measurement Period June 30, 2023 to June 30, 2024 ===== PAGE 67 ===== ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ### Q. Fund Balance The fund balances reported on the fund statements now consist of the following categories - Nonspendable - This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. • Restricted - This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers or through enabling legislation. • Committed - This classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. The City considers the adoption of a resolution to institute a formal action of City Council for the purpose of establishing, modifying or rescinding committed fund balances. • Assigned - This classification includes amounts to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. This includes amounts that are assigned through adoption of a resolution by City Council. The Council may delegate the ability of an employee or committee to assign uses of specific funds, for specific purposes. Such delegation of authority occurred on September 27th, 2018 and will be in effect for future fiscal years. • Unassigned - This classification includes the residual balance for the government's general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City's policy is to apply restricted fund balance first. When an expenditure is incurred for purposes for which committed, assigned or unassigned fund balances are available, the City's policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance. ### R. Net Position For government-wide reporting as well as in proprietary funds, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted. • Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization and reduced by outstanding balances of bonds, notes, and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position. Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation. • Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories. Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City's policy to consider restricted net position to have been depleted before unrestricted net position is applied. ===== PAGE 68 ===== ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ### S. Restricted Assets Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate trustee bank accounts and their use is limited to applicable bond covenants. In addition, funds have been restricted for future capital improvements by City resolution. ### T. New and Upcoming GASB Pronouncements Effective During Fiscal Year ## New Pronouncements The requirements of the following accounting standards are effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 2025. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations. The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB statements: ### GASB Statement No. 101, Compensated Absences The requirements of this Statement will improve financial reporting by implementing a unified recognition and measurement model that will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. Establishing the unified model will result in consistent application to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave. This Statement will also result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences. See Note 18 for details on restatements related to this pronouncement. ### GASB Statement No. 102, Certain Risk Disclosures The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government's financial condition. Management has assessed the impact of this Statement on the City's financial statements and determined that it did not have a material impact. ## Upcoming Pronouncements ### GASB Statement No. 103, Financial Reporting Model Improvements The requirements of this Statement will improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government's accountability. The Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. ===== PAGE 69 ===== ## NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) This Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows. This Statement also requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses. Operating revenues and expenses are defined as revenues and expenses other than nonoperating revenues and expenses. Nonoperating revenues and expenses are defined as (1) subsidies received and provided, (2) contributions to permanent and term endowments, (3) revenues and expenses related to financing, (4) resources from the disposal of capital assets and inventory, and (5) investment income and expenses. In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and changes in fund net position, this Statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. This Statement requires governments to present each major component unit separately in the reporting entity's statement of net position and statement of activities if it does not reduce the readability of the statements. If the readability of those statements would be reduced, combining statements of major component units should be presented after the fund financial statements. This Statement requires governments to present budgetary comparison information using a single method of communication—RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in notes to RSI. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. ### GASB Statement No. 104, Disclosure of Certain Capital Assets The requirements of this statement will provide users of government financial statements with essential information about certain types of capital assets. This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class. This Statement also requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. This Statement requires that capital assets held for sale be evaluated each reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. ===== PAGE 70 ===== ## NOTE 2 - CASH AND INVESTMENTS As of June 30, 2025 cash and investments were reported in the accompanying financial statements as follows:

Governmental activities	$ 351,996,712
Business-type activities	13,300,334
Component unit	883,712
Fiduciary Funds	42,866,009
Total cash and investments	$ 409,046,767

Cash and investments at June 30, 2025 consisted of the following:

Primary Government\nDemand accounts	$ 3,397,457
Petty cash	22,963
Investments	361,876,626
Total cash and investments - Primary Government	$ 365,297,046
Component Unit\nDemand accounts	883,712 < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Fiduciary FundsnDemand accounts < /td > < td style = 'text-align: center; word-wrap: break-word;' > 9,292,006
Demand accounts pooled with primary government Investments	1,919,494
	31,654,509
Total cash and investments - Fiduciary Funds	$ 42,866,009

The City of Palm Desert maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments. ### A. Deposits At June 30, 2025, the carrying amount of the deposits was $13,573,175, and the bank balance was $6,357,188. The $7,215,987 difference represents outstanding checks, deposits in transit and other reconciling items. The California Government Code requires California banks and savings and loan associations to secure an Entity's deposits by pledging government securities with a value of 110% of an Entity's deposits. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of total deposits. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an Agent of Depository has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency. ===== PAGE 71 ===== ## NOTE 2 - CASH AND INVESTMENTS (CONTINUED) ### B. Investments ## Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Investment TypesAuthorized by State Law	Authorized by Investment Policy	Maximum Maturity*	Maximum Percentage of Portfolio*	Maximum Investment in One Issuer*
United States Treasury Bills, Notes, Bonds	Yes	5 years	100%	none
Agency Securities	Yes	5 years	100%	30%
California State and Local Agency Debt	Yes	180 days		none
Commercial Paper	Yes	270 days	25%	10%
Negotiable Certificates of Deposit	Yes	5 years	5%	none
Time Certificates of Deposit	Yes	5 years	5%	none
Repurchase Agreements	Yes	1 year	10%	none
Medium-Term Corporate Notes	Yes	5 years	25%	10%
Money Market Mutual Funds	Yes	5 years	20%	none
Local Agency Investment Fund (LAIF)	Yes	N/A	75M/Acct	none
Structured Notes (STRIPS)	Yes	5 years	20%	none
Local Government Investment Pools	Yes	N/A	1	none

* Based on state law requirements or City investment policy requirements, whichever is more restrictive. The City Treasurer is authorized under state and municipal law to invest in various types of securities that meet specified credit quality standards, based upon credit risk ratings assigned by Standard and Poors (S&P), Fitch, or by Moody's Investor Services (Moody's). Permissible City investments include medium-term notes that are rated "A" or higher at time of purchase; commercial paper that is rated "A-1" or the equivalent; money market mutual funds that are rated "AAA"; and United States Government and Federal Agency securities (the quality of United States Treasury securities is not analyzed since they are not deemed to have credit risk). Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required, when applicable, by the California Government Code, the City's investment policy, or debt agreements, and the rating by Standard and Poor's, Fitch and Moody's as of year-end for each investment type. ===== PAGE 72 ===== ## NOTE 2 - CASH AND INVESTMENTS (CONTINUED) ## Primary Government

Investment Type	Minimum			Exempt or
	Total	Legal Rating	Aaa	AAA	Other	Not Rated
California Local Agency Investment Fund	$ 2,048,197	N/A	$ -	$ -	$ -	$ 2,048,197
California Asset Management Program	228,863,550	N/A	-	-	228,863,550	-
Riverside County Treasurer's Pooled Investment Fund	2,925,911	N/A	2,925,911	-	-	-
U.S. Agency Securities	46,459,921	N/A	46,459,921	-	-	-
Medium-term notes	21,122,330	N/A	557,090	-	20,565,240	-
Held by Fiscal Agent:
Money Market Deposit Account	60,456,717	N/A	-	-	-	60,456,717
Total	$361,876,626		$ 49,942,922	$ -	$249,428,790	$ 62,504,914

The ratings for the “Other” category above are as follows:

Investment Type	Aa	A	A1	A2	A3	Total
Medium-Term Corporate Notes	$ 6,767,934	$ 1,219,985	$ 5,420,342	$ 5,449,322	$ 2,264,747	$ 21,122,330

## Fiduciary Funds

Investment Type	Minimum			Exempt or
Investment Type	Total	Legal Rating	Aaa	AAA	Not Rated
California Local Agency Investment Fund	$ 822	N/A	$ -	$ -	$ 822
California Asset Management Program	6,619	N/A	-	6,619	-
Riverside County Treasurer's Pooled Investment Fund	373	N/A	373	-	-
Investment in City Bonds	73,000	N/A	-	-	73,000
Held by Fiscal Agent:
Money Market Deposit Account	31,573,695	N/A	-	-	31,573,695
Total	$ 31,654,509		$ 373	$ 6,619	$ 31,647,517

## Custodial Credit Risk The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for the investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. As of June 30, 2025, none of the City's deposits or investments were exposed to custodial credit risk. ## Concentration of Credit Risk The City's investment policy imposes restrictions on the percentage the City can invest in certain types of investments, which the City is in compliance. As of June 30, 2025, in accordance with GASB Statement No. 40, if the City has invested more than 10% of its total investments in any one issuer then they are exposed to concentration of credit risk. The City is not invested in any one issuer that is more than 10% of its total investments. ===== PAGE 73 ===== ## NOTE 2 - CASH AND INVESTMENTS (CONTINUED) ## Interest Rate Risk The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy states that the City shall not invest in securities with maturities exceeding five years. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2025, the City had the following investments and maturities: ## Primary Government

Investment Type	Total	Less than 6 Months	6 Months to 12 Months	12 to 36 Months	37 to 60 Months
California Local Agency Investment Fund	$ 2,048,197	$ 2,048,197	$ -	$ -	$ -
California Asset Management Program	228,863,550	228,863,550	-	-	-
Riverside County Treasurer's Pooled Investment Fund	2,925,911	2,925,911	-	-	-
U.S. Treasury Obligations	-	-	-	-	-
U.S. Agency Securities	46,459,921	325,660	5,562,457	17,702,948	22,868,856
Commercial paper	-	-	-	-	-
Certificates of deposit (negotiable)	-	-	-	-	-
Medium-term notes	21,122,330	1,374,985	-	10,480,084	9,267,261
Held by Fiscal Agent:
Money Market Deposit Account	60,456,717	60,456,717	-	-	-
Total	$ 361,876,626	$ 295,995,020	$ 5,562,457	$ 28,183,032	$ 32,136,117

## Fiduciary Funds

Investment Type	Total	Less Than 6 Months	6 Months to 12 Months	12 Months to 36 Months
California Local Agency Investment Fund	$ 822	$ 822	$ -	$ -
California Asset Management Program	6,619	6,619	-	-
Riverside County Treasurer's Pooled Investment Fund	373	373	-	-
Investment in City Bonds	73,000	37,000	-	36,000
Held by Fiscal Agent:
Money Market Deposit Account	31,573,695	31,573,695	-	-
Total	$ 31,654,509	$ 31,618,509	$ -	$ 36,000

## Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. ===== PAGE 74 ===== ## NOTE 2 - CASH AND INVESTMENTS (CONTINUED) ## Investment in California Asset Management Program The California Asset Management Program (CAMP) is a public joint powers authority which provides California Public Agencies with investment management services for surplus funds and comprehensive investment management, accounting and arbitrage rebate calculation services for proceeds of tax-exempt financings. The CAMP currently offers the Cash Reserve Portfolio, a short-term investment portfolio, as a means for Public Agencies to invest these funds. Public Agencies that invest in the Pool (Participants) purchase shares of beneficial interest. Participants may also establish individual, professionally managed investment accounts (Individual Portfolios) by separate agreement with the Investment Advisor. Investments in the Pools and Individual Portfolios are made only in investments in which Public Agencies generally are permitted by California statute. The CAMP may reject any investment and may limit the size of a Participant's account. The Pool seeks to maintain, but does not guarantee, a constant net asset value of $1 per share. A Participant may withdraw funds from its Pool accounts at any time by check or wire transfers. Requests for same-day wire transfers must be made by 11:00 a.m. that day. Fair value of the Pool is determined by the fair value per share of the Pool's underlying portfolio. ## Investment in Riverside County Treasurer's Pooled Investment Fund The City is a voluntary participant in the Riverside County Treasurer's Pooled Investment Fund (Pooled Fund). The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value that the Riverside County Treasurer's Office has provided for the entire Pooled Fund (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based upon the accounting records that the Riverside County Treasurer's Office maintains, which are recorded on an amortized cost basis. ## Fair Value Measurements The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the relative inputs used to measure the fair value of the investments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets in active markets that the City has the ability to access. Level 2: Inputs to the valuation methodology include: Quoted prices for similar assets in active markets; - Quoted prices for identical or similar assets in inactive markets; • Inputs other than quoted prices that are observable for the asset; • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs reflect the City's own assumptions about the inputs market participants would use in pricing the asset (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the City's own data. ===== PAGE 75 ===== ## NOTE 2 - CASH AND INVESTMENTS (CONTINUED) The asset's level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The determination of what constitutes observable required judgment by the City's management. City management considers observable data to be that market data which is readily available, regularly distributed or updated, reliable, and verifiable, not proprietary, and provided by multiple independent sources that are actively involved in the relevant market. The categorization of an investment within the hierarchy is based upon the relative observability of the inputs to its fair value measurement and does not necessarily correspond to City management's perceived risk of that investment. The methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. When available, quoted prices are used to determine fair value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy. When quoted prices in active markets are not available, fair values are based on evaluated prices received by City's asset manager from third party service provider. The following is a description of the recurring valuation methods and assumptions used by the City to estimate the fair value of its investments. For a large portion of the City's portfolio, the City's custodian applies their leveling methodology across all securities in a specific sector (i.e. U.S. Government Sponsored Agency Securities). Inputs to their pricing models are based on observable market inputs in active markets. The Successor Agency Former RDA's investment in City bonds is not tradable and is categorized in Level 3. When valuing Level 3 securities, the inputs or methodology are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. ## Primary Government

Input Category

Investment Type	Total	Input Category
		Level 1	Level 2	Level 3	Uncategorized
California Local Agency Investment Fund	$ 2,048,197	$ -	$ -	$ -	$ 2,048,197
California Asset Management Program	228,863,550	-	-	-	228,863,550
Riverside County Treasurer's Pooled Investment Fund	2,925,911	-	-	-	2,925,911
U.S. Treasury Obligations	-	-	-	-	-
U.S. Agency Securities	46,459,921	-	46,459,921	-	-
Commercial paper	-	-	-	-	-
Certificates of deposit (negotiable)	-	-	-	-	-
Medium-term notes	21,122,330	-	21,122,330	-	-
Held by Fiscal Agent:
Money Market Deposit Account	60,456,717	-	-	-	60,456,717
Total	$ 361,876,626	$ -	$ 67,582,251	$ -	$ 294,294,375

===== PAGE 76 ===== ## NOTE 2 - CASH AND INVESTMENTS (CONTINUED) ## Fiduciary Funds

Investment Type	Total	Input Category
Investment Type	Total	Level 1	Level 2	Level 3	Uncategorized
California Local Agency Investment Fund	$ 822	$ -	$ -	$ -	$ -	822
California Asset Management Program	6,619	-	-	-	-	6,619
Riverside County Treasurer's Pooled Investment Fund	373	-	-	-	-	373
Investment in City Bonds	73,000	-	-	73,000	-
Held by Fiscal Agent:
Money Market Deposit Account	31,573,695	-	-	-	31,573,695
Total	$ 31,654,509	$ -	$ -	$ 73,000	$ 31,581,509

## NOTE 3 - NOTES AND LOANS RECEIVABLE ### A. Notes Receivable On August 8, 2006, the City of Palm Desert issued $3,165,000 of Limited Obligation Bonds. The proceeds of the Bonds were used to finance the construction of the utility undergrounding and pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the property tax rolls of those properties benefiting from the improvements. Bond maturities began September 2, 2007, and continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The City of Palm Desert is the only bondholder on record for the bonds and reports a receivable in the general fund that corresponds to the outstanding principal on the bonds. As of June 30, 2025, the receivable balance was $926,000. ### B. Loans Receivable The City entered into several individual loan agreements with residents of the Highlands Utility Underground Assessment District No. 04-01. The loans were issued by the City to pay off the principal of the respective properties assessment. In turn, the residents agreed to pay to the City the full cost of the loan amount plus any accrued interest at a rate of 5.35%. The full amount of the loan along with all accrued interest is due and payable at the earliest of September 2, 2036 or any change in ownership of the property. As of June 30, 2025, the total receivable from the Highlands Deferral Loan Program was $14,978. Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been transferred to the Housing Asset Fund as the successor housing entity. The Housing Asset Fund has a loan receivable for the construction of a multi-family affordable housing development dated June 14, 2001 due from the PD Hovley Limited Partnership. The loan is secured by a Deed of Trust and Regulatory Agreement with Options on the housing development located in Palm Desert. On April 8, 2021 the Authority Board approved the re-syndication, refinancing and rehabilitation of the affordable housing development. The existing 2001 loan was modified to extend its maturity for fifty-five (55) years and provides for a suspension of principal payments for the estimated construction period. The Authority Loan shall bear interest at the greater of the current applicable federal rate as of the date of the Promissory Note or one percent (1%) simple interest per annum, and will be repaid from seventy-five percent (75%) of the developments residual receipts remaining after payment of fees and expenses. As of June 30, 2025, the total receivable from PD Hovley Limited Partnership was $5,148,813. ===== PAGE 77 ===== ## NOTE 3 - NOTES AND LOANS RECEIVABLE (CONTINUED) The Housing Asset Fund has a loan receivable for the construction of a multi-family affordable housing development dated December 20, 2022, due from Palm Desert Pacific Associates, a California Limited Partnership. The Authority Loan shall bear interest at three percent (3%) simple interest per annum, and repayment will commence as follows: 50% of Project Net Cash Flow, as defined in the Loan Agreement shall be paid to PDHA on an annual basis on June 30th after the first anniversary of issuance of a final certificate of occupancy for the project and each annual anniversary thereafter (with respect to the Project New Cash Flow for the preceding year ending on June 30th prior to each such payment date) until the Note has been satisfied in full. As of June 30, 2025, the total receivable from Palm Desert Pacific Associates was $6,030,000 and management has no reason to believe any allowance for doubtful accounts should be established for the loan. On August 28, 2008, the City Council approved through resolution the Energy Independence Program (EIP), which is supported by Assembly Bill AB811. The EIP program allowed the City to create the funding mechanism to assist the residents and businesses entering into a loan agreement with the City and providing the money for the borrowers to acquire and install energy efficient improvements. Assembly Bill AB811 allows the City to lien the properties through annual property tax assessments for a period not to exceed 20 years. To date, 279 residents and business owners entered into loan agreements with the City and have completed their improvements through the EIP program, as of June 30, 2025, 160 loans have been repaid. The loans are payable in two annual installments for a period of 5 years to 20 years at an interest rate of 7% annually. On June 30, 2025, the outstanding loans receivable through the EIP Program was $186,349. On November 1, 2024 The Palm Desert Housing Authority entered into a new loan agreement with A0358 Monterey L.P., a California limited partnership, in the amount of Seven Million Two Hundred Thirty-Five Thousand Dollars ($7,235,000) from the Authority's Low and Moderate Income Housing Asset Fund to fund the construction of One-Hundred Thirty Nine (139) of the One-Hundred Seventy Four (174) affordable housing units comprising the proposed apartment project, Crossings at Palm Desert Apartments. Pursuant to Health and Safety Code 34176(b), the housing assets of the former RDA have been transferred to the Palm Desert Housing Authority as the successor housing entity. The Housing Authority has loans for several other projects, all of which are secured by a deed of trust. An allowance for doubtful accounts equal to the loan balance has been recognized since there is a significant possibility that these loans will either become uncollectible or forgiven by the Housing Authority at a future date if all the terms of the loans have been met. On June 13, 2024, the City Council approved through a resolution of the Palm Desert Housing Authority a Disposition, Development and Loan Agreement (DDLA) with Chelsea Investments Corporation in the amount of Three Million Dollars ($3,000,000) from the Authority's Low and Moderate Income Housing Asset Fund, and have a term of Fifty-Five (55) years from the date of the issuance of the Certificate of Occupancy. The Authority Loan shall bear interest at three percent (3%) simple interest per annum, and principal will be repaid from a proportional share of the Projects residual receipts. The Authority Loan will be due and payable at the end of the loan term and will be used to fund the construction of Thirty-Nine (39) multi-family affordable housing units comprising the proposed apartment project, Arc Village Apartments. ===== PAGE 78 ===== ## NOTE 3 - NOTES AND LOANS RECEIVABLE (CONTINUED) Detailed information for these loans is as follows:

Project Name	Accrued Principal Balance Outstanding	Unpaid Interest Outstanding	Total Outstanding as of June 30, 2025	Interest Rate	Maturity Date	Notes
Home Improvement Loans	324,466	-	324,466	N/A	N/A	(1),(2)
Portola Palms Mobile Home Park	62,891	1,887	64,778	3.00%	30 years	(3)
Desert Rose	2,465,156	73,955	2,539,111	3.00%	30-45 years*	(1),(3)
Falcon Crest	3,003,562	90,107	3,093,669	3.00%	30-45 years*	(1),(2)
Acquisition, Rehabilitation, Resale	190,510	5,715	196,225	3.00%	30-45 years	(2)
Habitat for Humanity	327,000	9,810	336,810	7.25%	30 years or 2024	(2)
	6,373,585	181,474	6,555,059

Less: Allowance for Doubtful Accounts (6,555,059) Balance at June 30, 2025 $ -* All properties acquired from the former Redevelopment Agency after June 2009 will have a 45 year restrictive covenant and are secured by a deed of trust. (1) Portion of deferred loans are from funding sources other than Housing Authority. (2) Loan is payable upon change or transfer of title, refinancing or upon the death of the borrower. (3) Loan balance and interest will be forgiven at maturity if debtor does not breach the terms and conditions of either the unit regulatory agreement or note. ## NOTE 4 - INTERFUND RECEIVABLES, PAYABLE, ADVANCES AND TRANSFERS The composition of interfund balances as of June 30, 2025, was as follows: ### A. Due To/From Other Funds

Receivable Fund	Payable Fund	Amount
General Fund	Other Governmental Funds	$ 84,095

The amounts loaned from the General Fund to non-major governmental funds and capital properties were to cover cash shortfall at year end as of June 30, 2025. ### B. Advances To/From Other Funds

Receivable Fund	Payable Fund	Amount
General Fund	Other Governmental Funds	$ 709,000
Other Governmental Funds	Desert Willow Golf Course	1,598,773
		$ 2,307,773

The General Fund advanced $709,000 to the Energy Independence Special Revenue Fund to payoff the bonds used to fund energy efficiency. The advance to the Energy Independence Special Revenue Fund is repaid as the Energy Independence Program (EIP) loans are repaid. See Note 3 for more information on these loans. ===== PAGE 79 ===== ## NOTE 4 - INTERFUND RECEIVABLES, PAYABLE, ADVANCES AND TRANSFERS (CONTINUED) The Capital Golf fund advanced $3,627,329 to the Desert Willow Golf Course for the purchases of golf carts totaling $1,598,773. The advance for the golf carts will be repaid over 48 months beginning January 1, 2024 and bears interest at a rate of 2.5%. The advance for the golf course equipment will be repaid over 60 months beginning November 1, 2022 and bears interest at a rate of 2.5%. The future payment schedule for these advances are as follows:

	Advance to Desert Willow Golf Course Fund
Fiscal Year	Principal Payments	Interest Payments	Total Payments
2026	$ 820,670	$ 30,608	$ 851,278
2027	633,196	10,937	644,133
2028	144,907	756	145,663
Total	$ 1,598,773	$ 42,301	$ 1,641,074

### C. Due To/From Component Unit

Receivable Fund	Payable Fund	Amount
General Fund	Palm Desert Recreational Facilities Corporation	$ 420,000
Desert Willow Golf Course	Palm Desert Recreational Facilities Corporation	1,793,417
		$ 2,213,417

The Palm Desert Recreational Facilities Corporation (the Corporation) owes the General Fund $420,000 in deferred unpaid rent for various years through FY 2020-21 associated with the lease between the City and the Corporation. The Corporation owes the Desert Willow Golf Course Fund $1,793,417 which represents subsidies for operation, $1,437,644 of which relates to prior fiscal years and $355,773 which relates to the current year. There is no payment schedule in place for the repayment of these amounts, therefore these transactions have been recorded as long-term in the accompanying financial statements. ### D. Interfund Transfers The composition of interfund transfers as of June 30, 2025, was as follows:

Transfers In

Transfers Out	Transfers In
	General Fund	Prop A Fire Tax Special Revenue Fund	Other Governmental Funds	Internal Service Fund	Parkview Office	Totals
	$	-	5,000,000	$ 22,038,355	$ 3,950,608	$ 19,200	$ 31,008,163
General Fund	$	-	-	380,542	-	-	380,542
Housing Authority
Special Revenue Fund	-	-	-	-	-	-	2,115,140
Other Governmental Funds	2,115,140	-	-	-	-	-	376,285
Parkview Office	376,285	-	-	-	-	-	376,285
Totals	$ 2,491,425	$ 5,000,000	$ 22,418,897	$ 3,950,608	$ 19,200	$ 33,880,130

Transfers are used to: 1. Transfer revenues to provide for capital projects. 2. Transfer revenues to provide for additional resources to pay for expenditures. 3. Transfer to cover future cost of assets. ===== PAGE 80 ===== ## NOTE 5 - CAPITAL ASSETS A summary of changes in capital assets at June 30, 2025, were as follows: ### A. Primary Government - Governmental Activities

	Balance		Beginning Balance	Transfers	Additions	Deletions	Balance
	June 30, 2024	Adjustments	As Restated				June 30, 2025
Governmental activities:
Capital assets, not being depreciated/amortized
Land	$ 82,697,020	$ -	$ 82,697,020	$ -	$ -	$ -	$ 82,697,020
Right-of-way	121,260,045	-	121,260,045	-	-	-	121,260,045
Construction-in-progress	11,219,044	11,528,793	22,747,837	(20,272,566)	15,135,026	-	17,610,297
Total capital assets, not being depreciated/amortized	215,176,109	11,528,793	226,704,902	(20,272,566)	15,135,026	-	221,567,362
Capital assets, being depreciated/amortized
Buildings	151,140,855	-	151,140,855	8,615,451	-	-	159,756,306
Improvements other than buildings	63,662,563	-	63,662,563	5,583,668	426,615	-	69,672,846
Machinery, equipment, and vehicles	10,959,328	540,531	11,499,859	77,914	218,089	-	11,795,862
Infrastructure	254,409,656	-	254,409,656	5,995,533	-	-	260,405,189
Lease assets - buildings	2,468,060	-	2,468,060	-	529,792	-	2,997,852
Lease assets - equipment	135,224	-	135,224	-	-	-	135,224
Subscription assets - software as a service	813,368	-	813,368	-	140,618	(174,504)	779,482
Equipment - Internal service fund	9,824,905	-	9,824,905	-	851,883	-	10,676,788
Total capital assets, being depreciated/amortized	493,413,959	540,531	493,954,490	20,272,566	2,166,997	(174,504)	516,219,549
Less accumulated depreciation/amortization
Buildings	(85,208,048)	-	(85,208,048)	-	(3,621,511)	-	(88,829,559)
Improvements other than buildings	(52,498,377)	-	(52,498,377)	-	(2,088,607)	-	(54,586,984)
Machinery and equipment	(10,723,639)	-	(10,723,639)	-	(234,153)	-	(10,957,792)
Infrastructure	(139,608,703)	-	(139,608,703)	-	(5,115,088)	-	(144,723,791)
Lease assets - buildings	(609,816)	-	(609,816)	-	(309,230)	-	(919,046)
Lease assets - equipment	(93,578)	-	(93,578)	-	(31,466)	-	(125,044)
Subscription assets - software as a service	(283,761)	-	(283,761)	-	(262,465)	174,504	(371,722)
Equipment - Internal service fund	(6,955,551)	-	(6,955,551)	-	(726,526)	-	(7,682,077)
Total accumulated depreciation/amortization	(295,981,473)	-	(295,981,473)	-	(12,389,046)	174,504	(308,196,015)
Total capital assets, being depreciated/amortized, net	197,432,486	540,531	197,973,017	20,272,566	(10,222,049)	-	208,023,534
Total governmental activities capital assets	$ 412,608,595	$ 12,069,324	$ 424,677,919	$ -	$ 4,912,977	$ -	$ 429,590,896

===== PAGE 81 ===== ## NOTE 5 - CAPITAL ASSETS (CONTINUED) Depreciation/amortization expense was charged to functions/programs as follows:

General government	<fcel>	2,288,199
Public safety		1,652,090
Highways and streets		196,042
Sanitation		6,075,632
Culture and recreation		1,450,557
Internal service funds*		726,526
Total depreciation/amortization expense	<fcel>	12,389,046

* - Depreciation and amortization of capital assets held by the City's Internal Service Funds are charged to the various functions as part of the fees paid to the internal service funds throughout the year ### B. Primary Government – Business-Type Activities

	Balance			Balance
	June 30, 2024	Additions	Deletions	June 30, 2025
Business-type activities:
Capital assets, not being depreciated/amortized
Land	$ 53,304,965	$ 13,542	- < /td > < td colspan = "2" > 53,318,507
Total capital assets, not being depreciated/amortized	53,304,965	13,542	-	53,318,507
Capital assets, being depreciated/amortized
Buildings	28,643,259	14,967	-	28,658,226
Machinery, equipment, and vehicles	9,429,229	246,745	-	9,675,974
Total capital assets, being depreciated/amortized	38,072,488	261,712	-	38,334,200
Less accumulated depreciation/amortization
Buildings	(16,931,633)	(835,069)	-	(17,766,702)
Machinery, equipment, and vehicles	(5,743,399)	(1,175,931)	-	(6,919,330)
Total accumulated depreciation/amortization	(22,675,032)	(2,011,000)	-	(24,686,032)
Total capital assets, being depreciated/amortized, net	15,397,456	(1,749,288)	-	13,648,168
Total business-type activities capital assets	$ 68,702,421	$ (1,735,746)	- < /td > < td colspan = "2" > 66,966,675

Depreciation/amortization expense was charged to functions/programs as follows:

Parkview Office Complex	$ 318,646
Desert Willow Golf Course	1,692,354
Total depreciation/amortization expense	$ 2,011,000

===== PAGE 82 ===== ## NOTE 5 - CAPITAL ASSETS (CONTINUED) ### C. Component Unit

	Balance			Balance
	June 30, 2024	Additions	Deletions	June 30, 2025
Component Unit:
Capital assets, being amortized
Lease asset - building	$ 2,636,688	$ -	$ -	$ 2,636,688
Total capital assets, being amortized	2,636,688	-	-	2,636,688
Less accumulated amortization
Lease asset - building	(213,786)	(71,261)	-	(285,047)
Total accumulated amortization	(213,786)	(71,261)	-	(285,047)
Total capital assets, being amortized, net	2,422,902	(71,261)	-	2,351,641
Total component unit capital assets	$ 2,422,902	$ (71,261)	$ -	$ 2,351,641

## NOTE 6 - LONG-TERM LIABILITIES The following is a summary of long-term liability transactions of the City for the year ended June 30, 2025. ### A. Primary Government – Governmental Activities

	Balance			Balance		Due Within
	June 30, 2024	Additions	Reductions*	June 30, 2025	One Year
Direct Borrowing:
Special assessment debt with government commitment	980,000	-	(55,000)	925,000	58,000
Limited obligation improvement bonds	88,000	-	(18,000)	70,000	13,000
Claims liabilities	3,675,340	-	(2,833,669)	841,671	276,752
Compensated absences	2,672,687	-	(37,901)	2,634,786	500,000
Leases payable	1,978,673	529,792	(339,696)	2,168,769	312,538
Subscriptions payable	278,662	140,618	(206,549)	212,731	147,505
Total	9,673,362	670,410	(3,490,815)	6,852,957	1,307,795

* - Reductions reported for compensated absences are reported as net additions and reductions. Debt service payments for the special assessment debt with government commitment, tax allocation bonds and notes payable are made from debt service funds and a special revenue fund. ## Special Assessment Debt with Government Commitment Highlands Undergrounding Assessment District No. 04-01, Limited Obligation Improvement Bonds, Series 2006 On August 8, 2006, the City Palm Desert issued $3,165,000 of Limited Obligation Bonds. The proceeds of the Bonds were used to finance the construction of the utility undergrounding and pay the cost of issuance. The debt service on the bonds is to be paid by assessments secured on the property tax rolls of those properties benefiting from the improvements. In the event that assessment collections are insufficient to pay the debt service, the City has a potential obligation to provide additional funds to pay the debt service, therefore these bonds are reported as special assessment debt with government commitment. Bond maturities begin September 2, 2007, and continue annually through 2036. The interest rates of the bonds range from 3.85% to 5.15%. The City of Palm Desert is the only bondholder on record of the bonds and the City does not own the constructed assets. ===== PAGE 83 ===== ## NOTE 6 - LONG-TERM LIABILITIES (CONTINUED) The future debt service requirements on the Highlands Undergrounding Assessment District No. 04-01, Limited Obligation Improvement Bonds, Series 2006 are as follows:

Year Ending

June 30	Principal	Interest	Total
2026	$ 58,000	$ 46,099	$ 104,099
2027	61,000	43,065	104,065
2028	64,000	39,861	103,861
2029	67,000	36,488	103,488
2030	70,000	32,959	102,959
2031-2035	410,000	105,055	515,055
2036-2037	195,000	10,171	205,171
Totals	$ 925,000	$ 313,698	$ 1,238,698

## Limited Obligation Bonds ## Limited Obligation Improvement Bonds Series 2009A (Taxable) On January 29, 2009, the City issued $2,015,000 Limited Obligation Improvement Bonds Series 2009A (Taxable). The proceeds of the Bonds were used to fund the City's Energy Independence Program. Concurrent with the issuance of the Bonds, the City entered into a bond purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds equal to par value. The bonds bear interest at 3% payable semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and continue annually through September 2, 2029. The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009A (Taxable) are as follows:

Year Ending

June 30	Principal	Interest	Total
2026	$ 7,000	$ 1,140	$ 8,140
2027	$ 7,000	$ 930	$ 7,930
2028	$ 8,000	$ 720	$ 8,720
2029	$ 8,000	$ 480	$ 8,480
2030	$ 8,000	$ 240	$ 8,240
Totals	$ 38,000	$ 3,510	$ 41,510

## Limited Obligation Improvement Bonds Series 2009B (Taxable) On September 2, 2009, the City issued $1,136,000 Limited Obligation Improvement Bonds Series 2009B (Taxable). The proceeds of the Bonds were used to fund the City's Energy Independence Program. Concurrent with the issuance of the Bonds, the City entered into a bond purchase agreement with the Agency whereby the Agency agreed to purchase the Bonds equal to par value. The bonds bear interest at 3% payable semiannually on September 2 and March 2. Bond maturities commenced September 2, 2010, and continue annually through September 2, 2029. ===== PAGE 84 ===== ## NOTE 6 - LONG-TERM LIABILITIES (CONTINUED) The future debt service requirements on the Limited Obligation Improvement Bonds Series 2009B (Taxable) are as follows:

Year Ending

June 30	Principal	Interest	Total
2026	$ 6,000	$ 1,170	$ 7,170
2027	$ 7,000	$ 960	$ 7,960
2028	$ 7,000	$ 720	$ 7,720
2029	$ 7,000	$ 480	$ 7,480
2030	$ 5,000	$ 240	$ 5,240
Totals	$ 32,000	$ 3,570	$ 35,570

### B. Primary Government – Business-Type Activities

	Balance			Balance			Due Within
	June 30, 2024	Additions	Deletions	June 30, 2025		One Year
Direct Borrowing:
GPSI Leasing, LLC	$ 232,952	$ -	$ 88,395	$ 144,557	$	90,632
Total	$ 232,952	$ -	$ 88,395	$ 144,557	$	90,632

The City entered into a financed purchase agreement with GPSI Leasing, LLC for the purchase of golf carts. The financed purchase bears interest at a rate of 5.75%. On December 20, 2022 the finance purchase agreement was amended to extend additional the term for an 48 months resulting in a revised annual payment of $93,213 beginning February 1, 2024. The future debt service requirements on the financed purchases are as follows:

Year Ending

June 30	Principal	Interest	Total
2026	$ 90,632	$ 2,580	$ 93,212
2027	$ 53,925	$ 450	$ 54,375
Totals	$ 144,557	$ 3,030	$ 147,587

===== PAGE 85 ===== ## NOTE 7 - COMPENSATED ABSENCES The City's policy relating to compensated absences is described in Note 1 of the Notes to Financial Statements. The City historically allocates costs to liquidate liabilities for compensated absences and pension liability based on the allocation of the employees earning the respective benefits and their respective payroll expense to various fund across the City. The outstanding liability for compensated absences accrued was $2,634,786. ## NOTE 8 - LEASES ### A. Leases Receivable and Deferred Inflows of Resources ## Primary Government – Governmental Activities The City has entered into 4 leases as lessor ranging between 60-months and 444-months for the use of City buildings, cell towers, and soccer parks. An initial lease receivable was recorded related to these leases totaling $3,563,024. As of June 30, 2025, the value of the lease receivable is $2,836,447. The lessees are required to make monthly fixed payments ranging from $2,838 to $27,063. The leases have interest rates ranging from 0.577% to 1.583%. The value of the deferred inflows of resources as of June 30, 2025 were $2,774,291, and the City recognized lease revenue of $197,183 during the fiscal year. The principal and interest payments that are expected to maturity are as follows:

Governmental Activities

June 30	Principal	Interest	Total Payments
2026	$ 187,203	$ 45,373	$ 232,576
2027	$ 91,761	$ 43,336	$ 135,097
2028	$ 94,353	$ 41,916	$ 136,269
2029	$ 97,017	$ 62,915	$ 159,932
2030	$ 99,756	$ 38,966	$ 138,722
2031 - 2035	$ 440,898	$ 172,170	$ 613,068
2036 - 2040	$ 338,357	$ 141,643	$ 480,000
2041 - 2045	$ 368,445	$ 111,555	$ 480,000
2046 - 2050	$ 401,208	$ 78,792	$ 480,000
2051 - 2055	$ 436,885	$ 43,115	$ 480,000
2056 - 2058	$ 280,564	$ 7,436	$ 288,000
Totals	$ 2,836,447	$ 787,217	$ 3,623,664

## Primary Government – Business-Type Activities The City has entered into 13 leases as lessor ranging between 24-months and 120-months for the use of City buildings. An initial lease receivable was recorded related to these leases totaling $6,967,788. As of June 30, 2025, the value of the lease receivable is $6,842,690. The lessees are required to make monthly fixed payments ranging from $903 to $41,645. The leases have interest rates ranging from 0.577% to 3.739%. The value of the deferred inflows of resources as of June 30, 2025 were $6,708,885, and the City recognized lease revenue of $1,057,400 during the fiscal year. ===== PAGE 86 ===== ## NOTE 8 - LEASES (CONTINUED) The principal and interest payments that are expected to maturity are as follows:

Business-Type Activities

	Business- Type Activities
June 30	Principal		Interest	Total Payments
2026	$	1,001,552	$ 125,051	$ 1,126,603
2027	1,012,400		105,616	1,118,016
2028	1,037,898		85,506	1,123,404
2029	964,814		65,372	1,030,186
2030	942,510		47,430	989,940
2031 - 2035	1,835,663		40,651	1,876,314
Totals	$	6,794,837	$ 469,626	$ 7,264,463

### B. Leases Payable ## Primary Government – Governmental Activities As of June 30, 2025, the City had 4 active leases. The leases have payments that range from $2,138 to $216,884 and interest rates that range from 0.6320% to 2.9999%. As of June 30, 2025, the total combined value of the lease liability is $2,168,769, the total combined value of the short-term lease liability is $312,538. The combined value of the right to use assets, as of June 30, 2025 was $3,133,076 with accumulated amortization of $1,044,090. The leases had no variable payments and no other payments, not included in the lease liability, within the fiscal year. The principal and interest payments that are expected to maturity are as follows:

Governmental Activities

June 30	Principal	Interest	Total Payments
2026	$ 312,538	$ 33,242	$ 345,780
2027	309,871	27,635	337,506
2028	314,848	21,945	336,793
2029	320,659	16,133	336,792
2030	214,287	10,193	224,480
2031 - 2035	696,566	14,286	710,852
Totals	$ 2,168,769	$ 123,434	$ 2,292,203

## Component Unit On July 1, 2021, the Corporation entered into a 444-month lease as lessee for the use of the restaurant at the Desert Willow Golf Course Clubhouse from the City. An initial lease liability was recorded in the amount of $2,636,688. As of June 30, 2025, the value of the lease liability is $2,421,537. The Corporation is required to make monthly fixed payments of $8,000. The lease has an interest rate of 1.705%. The changes in lease liability for the year ended June 30, 2025 are as follows: ===== PAGE 87 ===== ## NOTE 8 - LEASES (CONTINUED)

Lease liability

Balance				Balance		Due Within
June 30, 2024		Additions		Reductions		June 30, 2025	One Year
$	2,475,747	$	-	$	(54,210)	$2,421,537	$55,142

The principal and interest payments that are expected to maturity are as follows:

Component unit

June 30	Component unit
June 30	Principal		Interest	Total Payments
2026	$	55,142	$ 40,858	$ 96,000
2027	$	56,090	$ 39,910	$ 96,000
2028	$	57,054	$ 38,946	$ 96,000
2029	$	58,034	$ 37,966	$ 96,000
2030	$	59,031	$ 36,969	$ 96,000
2031 - 2035	$	310,726	$ 169,274	$ 480,000
2036 - 2040	$	338,357	$ 141,643	$ 480,000
2041 - 2045	$	368,445	$ 111,555	$ 480,000
2046 - 2050	$	401,208	$ 78,792	$ 480,000
2051 - 2055	$	436,885	$ 43,115	$ 480,000
2056 - 2058	$	280,565	$ 7,436	$ 288,001
Totals	$	2,421,537	$ 746,464	$ 3,168,001

===== PAGE 88 ===== ## NOTE 9 - SUBSCRIPTIONS As of June 30, 2025, the City had 10 active subscriptions. The subscriptions have payments that range from $8,350 to $59,577 and interest rates that range from 2.0240% to 3.7640%. As of June 30, 2025 the total combined value of the subscription liability is $212,731 and the total combined value of the short-term subscription liability is $147,505. The combined value of the right to use asset, as of June 30, 2025 was $779,482 with accumulated amortization of $371,722. The subscriptions had no variable payments and no other payments, not included in the subscription liability, within the fiscal year. The principal and interest payments that are expected to maturity are as follows:

Governmental Activities

June 30	Principal		Interest		Total Payments
2026	$	147,505	$	6,149	$	153,654
2027		65,226		1,623		66,849
Totals	$	212,731	$	7,772	$	220,503

## NOTE 10 - RISK MANAGEMENT AND CLAIMS PAYABLE ### A. Description of Self-Insurance Pool Pursuant to Joint Power Agreement The City of Palm Desert is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 126 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. ### B. Primary Self-Insurance Programs of the Authority Each member pays an annual contribution at the beginning of the coverage period. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. ### C. Primary Liability Program Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority's website: https://cjpia.org/coverage/risk-sharing-pools/. ===== PAGE 89 ===== # NOTE 10 - RISK MANAGEMENT AND CLAIMS PAYABLE (CONTINUED) ### D. Primary Workers' Compensation Program Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. For 2025 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members. ### E. Pollution Legal Liability Insurance The City of Palm Desert participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Palm Desert. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million. ### F. Property Insurance The City of Palm Desert participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Palm Desert property is currently insured according to a schedule of covered property submitted by the City of Palm Desert to the Authority. City of Palm Desert property currently has all-risk property insurance protection in the amount of $397,495,666. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible. ### G. Crime Insurance The City of Palm Desert purchases crime insurance coverage in the amount of $10,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. ### H. Special Event Tenant User Liability Insurance The City or Palm Desert further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Palm Desert according to a schedule. The City of Palm Desert then pays for the insurance. The insurance is facilitated by the Authority. ### I. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were no significant reductions in pooled or insured liability coverage in the fiscal year 2024-25. ### J. Claims Payable Estimates for all workers' compensation and general liabilities up to the self-insured levels have been recorded as long-term liabilities. ===== PAGE 90 ===== ## NOTE 10 - RISK MANAGEMENT AND CLAIMS PAYABLE (CONTINUED) Changes in claims liabilities during the past two years are as follows:

	June 30, 2024	June 30, 2025
Claims payable - Beginning of year	$ 679,881	$ 3,675,340
Incurred claims (including IBNR) and changes in estimates	3,987,107	(1,707,500)
Claims payments	(991,648)	(1,126,169)
Claims payable - End of year	$ 3,675,340	$ 841,671
Claims payable - due in one year	$ 1,212,864	$ 276,752
Claims payable - due in more than one year	2,462,476	564,919
	$ 3,675,340	$ 841,671

## NOTE 11 - DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. Pursuant to changes in August 1996, of IRC Section 457, in January 1997, the City established a trust in which all assets held by Nationwide Retirement Solutions, Inc. (NRS) and ICMA Retirement Corporation (ICMA) were placed. In June 2024, the City transitioned all 457 accounts from Nationwide and ICMA to Empower. The City does not have fiduciary responsibility for the plan assets held by NRS, ICMA, or Empower. The assets, all property and rights purchased with such amounts and all income attributable to such amounts are held in trust for the exclusive benefit of the participants and the beneficiaries. The assets are no longer the property of the City, and as such, are no longer subject to the claims of the City's general creditors. As a result, the assets of the 457 plan in the amount of $15,873,542 held by NRS, ICMA, and Empower of the 457 Plan are not reflected in the City's financial statements. ===== PAGE 91 ===== ## NOTE 12 - PENSION PLAN ### A. General Information about the Pension Plan: ## Plan Description All qualified permanent and probationary employees are eligible to participate in the City's Miscellaneous Plan, agent multiple-employer defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. ## Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for the plan are applied as specified by the Public Employees' Retirement Law. The Plan's provisions and benefits in effect at measurement date, are summarized as follows:

	Miscellaneous
	Prior to January 1, 2013	On or after January 1, 2013
Hire date	2.7% @ 55	2.0% @ 62
Benefit formula	5 years of service	5 years of service
Benefit vesting schedule	monthly for life	monthly for life
Benefit payments	50-67	52-67
Retirement age	2.0% - 2.7%	1.0% - 2.5%
Monthly benefits, as a % of eligible compensation	7%-8%	7.75%
Required employee contribution rates	13.20%	13.20%
Required employer contribution rates

===== PAGE 92 ===== ## NOTE 12 - PENSION PLAN (CONTINUED) Employees Covered At June 30, 2023, the following employees were covered by the benefit terms for all Plans:

Inactive employees or beneficiaries currently receiving benefits	196
Inactive employees entitled to but not yet receiving benefits	97
Active employees	128
Total	421

## Contributions Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. ### B. Net Pension Liability The City's net pension liability for the Plan is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023, as of June 30, 2024, and as of June 30, 2024, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. ## Actuarial Assumptions The total pension liabilities in the June 30, 2024 actuarial valuations were determined using the following actuarial assumptions:

Valuation date	June 30, 2023
Measurement date	June 30, 2024
Actuarial cost method	Entry age normal
Actuarial assumptions:
Discount rate	6.90%
Inflation	2.30%
Payroll Growth	2.80%
Projected Salary Increase	Varies by Entry Age and Service
Investment Rate of Return	6.8% Net of Pension Plan Investment and Administrative Expenses; includes Inflation
Mortality rate table*	Derived using CalPERS' membership data for all funds

===== PAGE 93 ===== ## NOTE 12 - PENSION PLAN (CONTINUED) ## Discount Rate The discount rate used to measure the total pension liability was 6.90% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing of the Plans, the tests revealed the assets would not run out. Therefore, the current 6.80% discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 6.80% is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 section. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS Board effective on July 1, 2014.

Asset Class	Assumed Asset Allocation	Real Return1, 2
Global equity-cap-weighted	30.0 %	4.5 %
Global equity-non-cap-weighted	12.0 %	3.8 %
Private equity	13.0 %	7.3 %
Treasury	5.0 %	0.3 %
Mortgage-backed securities	5.0 %	0.5 %
Investment grade corporates	10.0 %	1.6 %
High yield	5.0 %	2.3 %
Emerging market debt	5.0 %	2.5 %
Private debt	5.0 %	3.6 %
Real assets	15.0 %	3.2 %
Leverage	(5.0)%	(0.6)%

1 An expected inflation of 2.30% used for this period.2 Figures are based on the 2022 Asset Liability Management study ===== PAGE 94 ===== ## NOTE 12 - PENSION PLAN (CONTINUED) ### C. Changes in the Net Pension Liability The changes in the net pension liability for the year ended June 30, 2025, with a measurement date of June 30, 2024, for the Miscellaneous Plan are as follows:

	Increase (Decrease)
	Total Pension Liability (a)	Plan Fiduciary Net Position (b)	Net Pension Liability/(Asset) (c) = (a) - (b)
Balance at June 30, 2023 (Measurement Date)	$ 163,168,247	$ 119,170,887	$ 43,997,360
Changes in the Year:
Service cost	2,533,663	-	2,533,663
Interest on total pension liability	11,137,558	-	11,137,558
Differences between expected and actual experience	1,408,050	-	1,408,050
Contributions - Employer	-	4,510,683	(4,510,683)
Contributions - Employees	-	1,092,559	(1,092,559)
Net investment income	-	11,419,049	(11,419,049)
Benefit payments, including refunds of employee contributions	(8,858,458)	(8,858,458)	-
Administrative expense	-	(96,970)	96,970
Net Changes	6,220,813	8,066,863	(1,846,050)
Balance at June 30, 2024 (Measurement Date)	$ 169,389,060	$ 127,237,750	$ 42,151,310

## Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for the Plan, calculated using the discount rate for the Plan, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

	Discount Rate\n-1 Percent\n(5.90%)	Current\nDiscount Rate\n(6.90%)	Discount Rate\n+1 Percent\n(7.90%)
Plan's net pension liability/(asset)	$ 63,752,843	$ 42,151,310	$ 24,233,249

## Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. ===== PAGE 95 ===== ## NOTE 12 - PENSION PLAN (CONTINUED) ### D. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2025, the City recognized pension expense of $7,380,538. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows of Resources

Deferred Inflows of Resources

Pension contributions subsequent to the measurement date

$ 5,697,799

$ -

Differences between expected and actual experience

2,509,642

Net difference between projected and actual earnings on pension plan investments

1,837,756

Total

$ 10,045,197

- < /td > < /tr > < /table > The5,697,799 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2026. Other amounts reported as deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Fiscal year ended June 30,	Deferred Outflows/(Inflows) of Resources
2026	$	1,832,210
2027		3,595,927
2028		(418,113)
2029		(662,626)
Total	$	4,347,398

===== PAGE 96 ===== ## NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS (OPEB) ### A. Plan Description In addition to the pension benefits described in Note 11 and 12, the City provides other post-employment benefits (OPEB) through the California Employers' Retiree Benefit Trust Fund (CERBT), an agent multiple-employer defined benefit healthcare plan administered by the California Public Employees' Retirement System (CalPERS). All full-time or part-time employees who meet the eligibility requirements for this program may continue their medical coverage through the CalPERS Health Plan and receive reimbursement from the City for a portion of the costs for the coverage. Separate financial statements for the CERBTh may be obtained by writing to CalPERS at Lincoln Plaza North, 400 Q Street, Sacramento, California 95811, or by visiting the CalPERS website at www.calpers.ca.gov. ## Employees Hired Prior to January 1, 2008 Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on or after age 50 with at least 10 consecutive years of service with the City. Eligible employees must be covered under the CalPERS Health Plan at the time of retirement and elect to participate in the stipend program within 30 days of retirement. The City's contribution towards the coverage is based on years of service as follows:

Consecutive Years of Service\nWith the City at Retirement	City's Contribution\nPercentage
10 years of service	50%
11 years of service	55%
12 years of service	60%
13 years of service	65%
14 years of service	70%
15 or more years of service	75%

## Employees Hired On or After January 1, 2008 Eligibility for the stipend requires retirement simultaneously from the City and CalPERS on or after age 50 with at least 15 consecutive years of service with the City. Eligible employees must be covered under the CalPERS Health Plan at the time of retirement and elect to participate in the stipend program within 30 days of retirement. The stipend is discontinued when the retiree reaches Medicare eligibility age. The City's contribution towards the coverage will be applied to the lowest cost plan and is based on age at retirement and consecutive years of service with the City as outlined in the following table:

Consecutive Years of Service at Retirement

Age	15	16	17	18	19	20	21	22	23	24	25+
50	0%	5%	10%	15%	20%	25%	30%	35%	40%	45%	50%
51	10%	15%	20%	25%	30%	35%	40%	45%	50%	50%	50%
52	20%	25%	30%	35%	40%	45%	50%	50%	50%	50%	50%
53	30%	35%	40%	45%	50%	50%	50%	50%	50%	50%	50%
54	40%	45%	50%	50%	50%	50%	50%	50%	50%	50%	50%
55+	50%	50%	50%	50%	50%	50%	50%	50%	50%	50%	50%

===== PAGE 97 ===== ## NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) Employees with at least 5 years of service, not meeting the eligibility requirements for the stipend program, who retire simultaneously from the City and CalPERS are eligible to continue medical coverage through the CalPERS Health Plan. The City is required to pay the CalPERS minimum employer contribution ($151 in 2024 and $157 in 2025) for these employees. Employees Hired On or After January 1, 2015 Employees are not eligible for either of the defined retiree health benefits plan but are instead enrolled in the City's ICMA Retirement Health Savings Account. Employees have a mandatory 1% contribution to the Retirement Health Savings Plan and the City matches the 1% contribution. In addition, an employee can participate in the ICMA 401A Governmental Money Purchase Plan with a maximum pre-tax dollar contribution of 10%, with the City maximum match of 2%. As of June 30, 2023, the date of the most recent actuarial valuation, the City's plan has 128 active employees. Employees Covered - Plan membership, at June 30, 2023 valuation date, membership consisted of the following:

Inactive members currently receiving benefits	94
Active members	128
Total	222

### B. City Contributions to the Plan City contributions to the Plan occur as benefits are paid to retirees and/or to the OPEB trust. ### C. Net OPEB Liability/(Asset) The City's Net OPEB Liability/(Asset) was measured as of June 30, 2024 and the Total OPEB Liability used to calculate the Net OPEB Liability/(Asset) was determined by an actuarial valuation as of June 30, 2023. ===== PAGE 98 ===== ## NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) Actuarial assumptions. The total OPEB liability was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.50% Salary Increase 3.00% per annum Assumed Wage Inflation 3.00% per annum Investment Rate of Return 5.85% per annum Healthcare cost-trend rates Assumed to start at 6.0% and grade down by 0.5% each year to 3.9% in 2075. Retirement Age The City offers the same plans to its retirees as to its active employees, with the general exception that upon reaching age 65 and becoming eligible for Medicare, the retiree must join one of the Medicare Supplement coverages offered under PEMHCA. Mortality Mortality rates used were those published by CalPERS under the 2021 Experience study and projected using the MacLeod Watts Scale 2022 applied generationally. ### D. Discount Rate GASB 75 requires a discount rate that reflects the following: a) The long-term expected rate of return on OPEB plan investments – to the extent that the OPEB plan's fiduciary net position (if any) is projected to be sufficient to make projected benefit payments and assets are expected to be invested using a strategy to achieve that return; a. A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher – to the extent that the conditions in (a) are not met. ===== PAGE 99 ===== ## NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) ### E. Changes in the Net OPEB Liability/(Asset) The changes in the net OPEB liability/(asset) for the Plan are as follows:

	Total OPEB Liability (a)	Plan Fiduciary Net Position (b)	Net OPEB Liability/(Asset) (c) = (a) - (b)
Balance at June 30, 2023 (measurement date)	$ 23,671,335	$ 21,789,415	$ 1,881,920
Changes in the year:
Service cost	383,189	-	383,189
Interest on total OPEB liability	1,287,056	-	1,287,056
Contributions - employer	-	1,306,991	(1,306,991)
Net investment income	-	1,198,225	(1,198,225)
Benefit payment contributions	(1,306,991)	(1,306,991)	-
Changes due to investment experience	-	584,831	(584,831)
Changes in benefit terms	3,055,225	-	3,055,225
Change in trust return/discount Rate	(997,730)	-	(997,730)
Administrative expense	-	(7,014)	7,014
Net changes	2,420,749	1,776,042	644,707
Balance at June 30, 2024 (measurement date)	$ 26,092,084	$ 23,565,457	$ 2,526,627

### F. Sensitivity of the Total OPEB Liability and Net OPEB Liability/(Asset) to Changes in the Discount Rate The following presents the total OPEB liability and net OPEB liability/(asset), as well as what the total OPEB liability and net OPEB liability/(asset) would be if they were calculated using a discount rate that is 1-percentage point lower 4.85 percent) or 1-percentage-point higher (6.85 percent) than the current discount rate:

	Discount Rate -1% (4.85%)	Current (5.85%)	Discount Rate +1% (6.85%)
Plan's net OPEB liability/(asset)	$ 5,546,833	$ 2,526,627	$ (9,011)

### G. Sensitivity of the Total OPEB Liability and Net OPEB Liability/(Asset) to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability and net OPEB liability/(asset), as well as what the total OPEB liability and net OPEB liability/(asset) would be if they were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:

	Current
	1% Decrease	Healthcare Trend Rate	1% Increase
Plan's net OPEB liability/(asset)	$ (278,177)	$ 2,526,627	$ 5,897,995

===== PAGE 100 ===== ## NOTE 13 - OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) ### H. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $2,811,802. As of fiscal year ended June 30, 2025, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

	Deferred Outflows of Resources	Deferred Inflows of Resources
OPEB contributions subsequent to the measurement date	$ 1,403,495	$ -
Changes of assumptions	224,484	613,703
Differences between expected and actual experience	2,162,407	163,422
Net difference between projected and actual earnings on pension plan investments	1,047,595	-
Total	$ 4,837,981	$ 777,125

The City will recognize the contributions made subsequent to the measurement date totaling $1,403,495 in the next fiscal year. In addition, future recognition of the deferred resources is shown below:

Fiscal year ended June 30,	Deferred Outflows/(Inflows) of Resources
2026	$ 1,521,369
2027	1,281,033
2028	(24,360)
2029	(105,936)
2030	11,031
Thereafter	(25,776)
Total	$ 2,657,361

===== PAGE 101 ===== ## NOTE 14 - SPECIAL ASSESSMENT DEBT Below is a summary of the changes in the special assessment bonds payable:

	Balance			Balance		Amount
	June 30, 2024	Additions	Deletions	June 30, 2025	Due Within One Year
2003 Assessment Revenue Bonds	$ 559,001	$ -	$ 120,000	$ 439,001	$ 125,000
CFD 2021-1 Special Tax Bonds Series 2021	14,114,999	-	315,000	13,799,999	325,000
CFD 2005-1 Special Tax Bonds Series 2021A	4,645,000	-	280,000	4,365,000	290,000
Section 29 Assessment District 2004-02 Limited Obligation Bonds Series 2021	14,650,000	-	2,106,831	12,543,169	850,000
Special Tax Bonds, Series 2024	11,600,000	-	40,000	11,560,000	50,000
Total	$ 45,569,000	$ -	$ 2,861,831	$ 42,707,169	$ 1,640,000

The City has Special Assessment Bonds Payable issued under the 1911 and 1915, Special Improvement Acts and the 1982 Mello-Roos Community Facilities Act (1982 Bonds). The City has no liability to 1911 Act bondholders until assessments have been collected from the property owner. Such liability is then recorded in the Custodial Funds. Therefore, the 1911 Bonds are not recorded as liabilities in the accompanying financial statements. The City also has no liability to the 1915 Act bondholders, or the bondholders of bonds issued under the 1982 Mello-Roos Community Facilities Act until assessments are collected on the tax rolls. However, the City may take certain actions to assume secondary liability for all or part of 1915 Act Bonds and the 1982 Bonds until such time as foreclosure proceedings are consummated. Special assessment bonds payable, as described below, and are not recorded as long-term liabilities, as these obligations do not constitute a debt or obligation of the City. ### A. 2003 Assessment Revenue Bonds In June 2003, the Palm Desert Financing Authority issued 4,423,000 in 2003 Assessment Revenue Bonds. The proceeds were used to purchase three series of limited obligation improvement bonds issued by the City in connection with the financing and refinancing of certain improvements of benefit to property within the City'sAssessment District No. 94-2 (Sunterrace), Assessment District No. 94-3 (Merano) and Silver Spur Ranch Utility Underground Assessment District No. 01-01. These bonds were issued under the 1915 Improvement Bond Act to provide funds for public improvements in the respective assessment districts. Debt service requirements to maturity are as follows: < table border = 1 style = 'margin: auto; word-wrap: break-word;' > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Year EndingnJune 30, < /td > < td style = 'text-align: center; word-wrap: break-word;' > Principal < /td > < td style = 'text-align: center; word-wrap: break-word;' > Interest < /td > < td style = 'text-align: center; word-wrap: break-word;' > Total < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > 2026 < /td > < td style = 'text-align: center; word-wrap: break-word;' > 125,000

$ 25,934

$ 150,934

2027

135,000

18,947

153,947

2028

140,000

11,556

151,556

2029

39,001

3,897

42,898

Total

$ 439,001

$ 60,334

$ 499,335

As of June 30, 2025, the principal amounts to be repaid by the Assessment District No. 01-1 to pay off the loans from the Financing Authority is $439,001. ===== PAGE 102 ===== ## NOTE 14 - SPECIAL ASSESSMENT DEBT (CONTINUED) #### B. Community Facilities District No. 2005-1, Series 2021A In July 2021, the City of Palm Desert Community Facilities District No. 2005-1 (University Park) Special Tax Refunding Bonds, Series 2021A (the “Bonds”) are being issued by City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the “District”) to provide funds: (i) to refund a portion of the District’s outstanding Special Tax Bonds, Series 2006A (the “2006 Bonds”); (ii) to fund a Reserve Account for the Bonds; and (iii) to pay costs incurred in connection with the issuance of the Bonds. The 2006 Bonds were issued for the purpose of providing funds to pay the costs of acquiring certain public facilities. The Bonds are special obligations of the District and are payable solely from Net Taxes (as defined herein), and the other assets pledged therefor under the Indenture, all as further described herein. Special Taxes (as defined herein) are to be levied according to the rate and method of apportionment approved by the City Council of the City and the qualified electors within the District. Interest rates vary from 3.00% to 4.00% with interest payable semi-annually on March 1 and September 1, with principal maturing annually on September 1. Debt service requirements to maturity are as follows:

Year Ending\nJune 30,	Principal	Interest	Total
2026	$ 290,000	$ 168,800	$ 458,800
2027	300,000	157,000	457,000
2028	315,000	144,700	459,700
2029	330,000	131,800	461,800
2030	340,000	118,400	458,400
2031-2035	1,505,000	328,700	1,833,700
2036-2037	1,285,000	78,500	1,363,500
Total	$ 4,365,000	$ 1,127,900	$ 5,492,900

### C. Section 29 Assessment District (No 2004-02), Limited Obligation Improvement Bonds, Series 2021 In July 2021, the City of Palm Desert issued $16,400,000 Limited Obligation Improvement Bonds. The proceeds of the Bonds will be used to refund previously issued series 2017 bonds that financed certain infrastructure improvements within the City's Section 29 Assessment District (No. 2004-02). The debt service on the bonds is to be paid by assessments secured on the property tax rolls of those properties benefiting from the improvements. Interest ranging from 4.00% to 4.70% payable semiannually on March 2 and September 2. Bond maturities begin September 2, 2009 and continue annually through 2020. Term bonds in the amount of $2,525,000 carry an interest rate of 4.75% and mature September 2, 2022. Term bonds in the amount of $5,110,000 carry an interest rate of 5.05% and mature September 2, 2027. Term bonds in the amount of $12,543,169 carry an interest rate of 5.10% and mature September 2, 2037. ===== PAGE 103 ===== ## NOTE 14 - SPECIAL ASSESSMENT DEBT (CONTINUED) Debt service requirements to maturity are as follows:

Year Ending\nJune 30,	Principal	Interest	Total
2026	$ 850,000	$ 547,000	$ 1,397,000
2027	880,000	512,400	1,392,400
2028	920,000	476,400	1,396,400
2029	955,000	438,000	1,393,000
2030	990,000	399,100	1,389,100
2031-2035	3,230,000	950,200	4,180,200
2036-2038	4,718,169	599,200	5,317,369
Total	$ 12,543,169	$ 3,922,300	$ 16,465,469

#### D. Community Facilities District No. 2021-1, Series 2021 The City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2021 (the “Bonds”) are being issued by the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”) to: (i) pay and defense a pro rata portion of outstanding Series 2006A Special Tax Bonds (the “CFD 2005-1 Pro Rata Bonds”) issued by, and secured by the special taxes of existing City of Palm Desert Community Facilities District No. 2005-1 (University Park) (“CFD No. 2005-1”); (ii) finance the acquisition of certain public improvements needed with respect to the development of property located within the District, including public improvements to be owned by the City and water and sewer facilities to be owned and operated by the Coachella Valley Water District; (iii) fund a reserve account for the Bonds; and (iv) pay costs of issuance for the Bonds. Interest rates vary from 3.00% to 4.00% with interest payable semi-annually on March 1 and September 1, with principal maturing annually on September 1. Debt service requirements to maturity are as follows:

Year Ending

Year Ending\nJune 30,	Principal	Interest	Total
2026	$ 325,000	$ 543,675	$ 868,675
2027	335,000	533,775	868,775
2028	345,000	523,575	868,575
2029	355,000	513,075	868,075
2030	365,000	502,275	867,275
2031-2035	1,575,000	1,886,650	3,461,650
2036-2040	2,335,000	1,980,900	4,315,900
2041-2045	2,835,000	1,465,100	4,300,100
2046-2050	3,445,000	839,500	4,284,500
2051-2052	1,884,999	147,800	2,032,799
Total	$ 13,799,999	$ 8,936,325	$ 22,736,324

===== PAGE 104 ===== ## NOTE 14 - SPECIAL ASSESSMENT DEBT (CONTINUED) #### E. Community Facilities District No. 2021-1, Series 2024 The City of Palm Desert Community Facilities District No. 2021-1 (University Park) Special Tax Bonds, Series 2024 (the “Bonds”) are being issued by the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”) to: (i) finance the acquisition of certain public improvements needed with respect to the development of property located within the District, including public improvements to be owned by the City of Palm Desert (the "City") and water and sewer facilities to be owned and operated by the Coachella Valley Water District ("CVWD"); (ii) fund a reserve account for the Bonds; and (iii) pay costs of issuance for the Bonds; and (iv) fund capitalized interest to pay debt service on the Bonds through and including September 1, 2024. Interest rates vary from 3.00% to 4.00% with interest payable semi-annually on March 1 and September 1, with principal maturing annually on September 1. ## Debt service requirements to maturity are as follows:

Year Ending June 30,	Principal	Interest	Total
2026	$ 50,000	$ 569,975	$ 619,975
2027	65,000	567,850	632,850
2028	80,000	565,088	645,088
2029	95,000	561,688	656,688
2030	120,000	557,650	677,650
2031-2035	875,000	2,696,875	3,571,875
2036-2040	1,510,000	2,432,500	3,942,500
2041-2045	2,390,000	1,972,500	4,362,500
2046-2050	3,540,000	1,266,000	4,806,000
2051-2053	2,835,000	290,250	3,125,250
Total	$ 11,560,000	$ 11,480,376	$ 23,040,376

### F. Bond Reserve Requirements At June 30, 2025, the fund balance reserve requirements and actual reserve balances were as follows:

	Requirement	Actual
2003 Financing Authority Revenue Bonds	$ 151,566	$ 151,566
CFD 2021-1 Special Tax Bonds, Series 2021	868,775	868,775
CFD 2005-1 Special Tax Bonds, Series 2021A	461,800	461,800
Section 29 Assessment District 2004-02
Limited Obligation Bonds Series 2021	1,267,900	1,267,900
Special Tax Bonds, Series 2024	1,007,164	1,007,164

===== PAGE 105 ===== ## NOTE 15 - FUND BALANCES In the fund financial statements, reserves segregate portions of fund balances that are either not available or have been earmarked for specific purposes. The various reserves established as of June 30, 2025, were as follows:

		Special Revenue Funds			Capital Projects Fund	Other Governmental Funds	Total
	General	Prop A Fire Tax	Housing Asset Fund	Housing Authority	Restricted Capital Project Fund	Other Governmental Funds	Total
Nonspendable
Inventory	$ 3,642	$ -	$ -	$ -	$ -	$ -	$ 3,642
Prepaid costs and deposits	1,019,785	-	600	-	1,106	75,239	1,096,730
Notes and loans	940,978	-	-	-	-	-	940,978
Advances	709,000	-	-	-	-	-	709,000
Total nonspendable	2,673,405	-	600	-	1,106	75,239	2,750,350
Restricted
Capital projects	-	-	-	-	44,357,695	34,049,822	78,407,517
Debt service	-	-	-	-	-	163,255	163,255
Low income housing	-	-	53,769,292	6,494,797	-	4,872,533	65,136,622
Public facilities	-	-	-	-	-	9,968,763	9,968,763
Public safety	-	27,231,870	-	-	-	45,330	27,277,200
Special programs	-	-	-	-	-	3,733,017	3,733,017
Street related purposes	-	-	-	-	-	4,412,243	4,412,243
Total restricted	-	27,231,870	53,769,292	6,494,797	44,357,695	57,244,963	189,098,617
Committed
Capital asset replacement	-	-	-	11,875,488	-	-	11,875,488
Capital improvement projects reserve	11,342,033	-	-	-	-	-	11,342,033
Facilities maintenance reserve	6,961,265	-	-	-	-	-	6,961,265
Liability reserve	4,000,000	-	-	-	-	-	4,000,000
Other fund stability reserve	7,961,507	-	-	-	-	-	7,961,507
Emergency/contingency reserve	19,359,007	-	-	-	-	-	19,359,007
Employment benefits reserve	10,697,122	-	-	-	-	-	10,697,122
Equipment replacement reserve	2,994,711	-	-	-	-	-	2,994,711
Energy loan program	-	-	-	-	-	1,966,005	1,966,005
Total committed	63,315,645	-	-	11,875,488	-	1,966,005	77,157,138
Assigned
General fund operating reserve	17,893,816	-	-	-	-	-	17,893,816
Community contingency	444,000	-	-	-	-	-	444,000
Capital projects	-	-	-	-	-	21,171,489	21,171,489
Special programs	-	-	-	-	-	995,033	995,033
Street related purposes	-	-	-	-	-	4,836,880	4,836,880
Total assigned	18,337,816	-	-	-	-	27,003,402	45,341,218
Unassigned	36,378,597	-	-	-	-	-	36,378,597
Total fund balances (deficits)	$120,705,463	$27,231,870	$53,769,892	$18,370,285	$44,358,801	$ 86,289,609	$350,725,920

===== PAGE 106 ===== ## NOTE 16 - CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS Construction Commitments Primary Government

Project	Contract Amount	Spent To Date	Remaining Commitment
Measure A
El Paseo Street Rehabilitation Project	$ 537,900	$ 106,630	$ 431,270
Slurry Seal Project FY2024-25	2,710,175	2,049,809	660,366
Stormwater & Drainage Infrastructure Assessment	1,109,437	589,124	520,313
Traffic Signal Improvements	474,428	144,018	330,410
Walk n Roll PD - Phase I, II, and III	605,370	391,096	214,274
Capital Projects
El Paseo Street Rehabilitation Project	4,783,489	4,398,037	385,452
Eldorado Drive Rehabilitation Project	2,885,336	2,585,652	299,684
Fire Station 33 Remdel & 71 Rebuild	1,536,700	940,574	596,126
North Sphere Fire Station 102	16,322,686	5,515,562	10,807,124
Park Improvements	1,232,952	122,926	1,110,026
Housing Authority
City owned buildings improvements	5,053,562	2,799,032	2,254,530
Other Governmental Funds
City Owned Buildings Improvements	495,828	261,054	234,774
DW Perimeter Landscape & Lighting Rehabilitation	1,231,528	1,047,089	184,439
Equipment Ordered, Vehicles	735,655	320,807	414,848
Street Improvements	266,413	111,837	154,576
	$ 39,981,459	$ 21,383,247	$ 18,598,212

===== PAGE 107 ===== ## NOTE 17 - SUCCESSOR AGENCY DISCLOSURES ## Dissolution of Redevelopment Agency Pursuant to AB X1 26 (adopted by the California Legislature in June 2011) and the State Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), all redevelopment agencies in the State were dissolved as of February 1, 2012. The City Council adopted Resolution No. 2011-76 on August 25, 2011, pursuant to Health and Safety Code ("HSC") Section 34172, electing for the City to serve as the Successor Agency ("SARDA") to the former Palm Desert Redevelopment Agency (the "Dissolved RDA"). SARDA is tasked with the wind-down of the Dissolved RDA's affairs. Certain SARDA actions must first be approved by an oversight board, composed of seven-members representing taxing entities. HSC Section 34173(g) expressly provides that SARDA is a separate public entity from the City, and the liabilities and assets of the Dissolved RDA shall not be transferred to the City. Pursuant to HSC Section 34176, the City Council adopted Resolution No. 2012-07, on February 9, 2012, electing to have the Palm Desert Housing Authority to serve as the Housing Successor. The Housing Authority (as the Housing Successor) submitted to the State Department of Finance ("DOF") a list of housing assets to be transferred by SARDA to the Housing Successor. On August 31, 2012, the DOF issued a letter indicating that the DOF had no objection to such housing asset list. The housing assets (per the housing asset list), obligations, and activities of the Dissolved RDA were transferred to the Housing Successor and are reported in the Housing Asset Fund beginning in fiscal year 2011-12. However, outstanding bonds ("Housing Bonds"), secured by a pledge of moneys which would have been deposited into the Dissolved RDA's low and moderate income housing fund (known as the "Housing Set Aside"), remain as the SARDA's enforceable obligations. See also "Stipulated Judgment" below. All other assets, obligations, and activities of the Dissolved RDA have been transferred and are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City. The County Auditor-Controller ("CAC") has established a Redevelopment Property Tax Trust Fund (the "RPTTF") for SARDA and is charged with depositing into the RPTTF the amount of property taxes that would have been redevelopment property tax increment had the Dissolved RDA not been dissolved. SARDA is required to prepare an annual recognized obligation payment schedule (the "ROPS") setting forth the amounts due for enforceable obligations from each July 1 through the following June 30. The CAC only makes payments to the SARDA from the RPTTF based on the ROPS amounts approved by the oversight board and the DOF. During fiscal year 2012-13, SARDA was required to conduct due diligence reviews of the low and moderate income housing fund and all other funds to compute the funds (cash) which were not needed to be retained to pay existing enforceable obligations or otherwise unrestricted, and therefore, must be remitted to the CAC. SARDA paid a total amount of $40,988,399 to the CAC based on the due diligence reviews per the DOF's determination. The DOF issued a Finding of Completion on May 15, 2013 after SARDA remitted such payments. The Finding of Completion allows the placement of certain loans (“Advances”) made by the City to the Dissolved RDA (which were previously voided by operation of law upon the Dissolved RDA’s dissolution) on the ROPS. For each approved repayment 20% of the repayment amount must be allocated to the Housing Asset Fund. The repayment of the Advances, pursuant to the oversight board’s and the DOF’s approval, began during fiscal year 2019-20. During fiscal year 2024-25, the City received a final determination from the California Department of Finance that these advances would not be deemed an enforceable obligation. There is no financial statement impact as these balances were offset by an allowance for doubtful accounts in previous years. The California State Controller was directed to review the propriety of any transfers of assets between the Dissolved RDA and other public bodies that occurred after January 1, 2011. The State Controller completed its review on March 14, 2013 and did not identify any unallowable transfers of assets that occurred between the Dissolved RDA and the City or other public agencies. ===== PAGE 108 ===== ## NOTE 17 - SUCCESSOR AGENCY DISCLOSURES (CONTINUED) SARDA's use and disposition of all real properties held (Long Range Property Management Plan ("LRPMP"), was approved by the DOF on June 2, 2014. The LRPMP allowed the SARDA to transfer property used for government purposes with a cost basis of $6,390,263 to the City. ## Stipulated Judgment On May 15, 1991, the Riverside County Superior Court entered a final judgment incorporating the terms of a Stipulation for Entry of Judgment ("Original Stipulation") in Case No. 51124 and a Stipulation for Entry of Judgment pursuant to Settlement Agreement and Mutual Release ("Settlement Agreement") in Case No. 51124, among the Dissolved RDA, the City, the Western Center on Law and Poverty, Inc., California Rural Legal Assistance, and others. On June 18, 1997 and on September 20, 2002, the Riverside County Superior Court amended the judgment, incorporating Stipulations Amending Stipulation for Entry of Judgment. The judgment, as amended (the “Judgment”), generally required the Dissolved RDA to use 20% of its tax increment revenues, and additional tax increment revenues if necessary, to develop, rehabilitate, or otherwise financially assist affordable housing units and to meet certain housing needs of the City. Before dissolution, the Dissolved RDA used its Housing Set-Aside to fulfill its obligations under the Judgment (including the payment of debt service on the Housing Bonds issued to finance and refinance affordable housing projects that satisfied the requirements of both the Judgment and the relevant Redevelopment Law provisions). While the low and moderate income housing fund and the requirement to deposit the Housing Set-Aside into such fund have been eliminated upon the Dissolved RDA’s dissolution, SARDA continues to recognize the Judgment as its enforceable obligation. On its ROPS, the SARDA has included line items designated as “Stipulation Judgment Case No. 51124,” listing the amounts necessary to fulfill its obligations under the Judgment (after taking into account the amounts already listed for the repayment of the Housing Bonds). While the DOF originally approved such line items, the DOF changed its position beginning with ROPS 14-15A (i.e., covering the period commencing July 1, 2014). On August 14, 2014, SARDA filed an action, SARDA to the Palm Desert Redevelopment Agency v. Michael Cohen, Sacramento Superior Court Case No. 34-2014-00167698 (the “Successor Agency Lawsuit”), seeking to compel the DOF to permit payment of the affordable housing obligations mandated by the Judgment. Subsequently, in view of the fact that there were similar cases pending in the California Court of Appeal (Third District), the SARDA voluntarily dismissed its action without prejudice pending resolution of those other cases. To date, none of the other cases has resulted in a decision that would compel the DOF to permit payment of the obligations under the Judgment as an enforceable obligation. The assets and liabilities of the Dissolved RDA (except for those transferred to the Housing Successor and reported in the Housing Asset Fund) have been transferred to the SARDA. The SARDA is acting in a fiduciary capacity for the assets and liabilities. Disclosures related to these transactions are as follows: ## Capital Assets

	Balance			Balance
	June 30, 2024	Additions	Deletions	June 30, 2025
Capital assets, not being depreciated:
Land	$ 15,939,958	$ -	$ -	$ 15,939,958
Total capital assets, not being depreciated	15,939,958	-	-	15,939,958
Total fiduciary fund capital assets	$ 15,939,958	$ -	$ -	$ 15,939,958

===== PAGE 109 ===== ## NOTE 17 - SUCCESSOR AGENCY DISCLOSURES (CONTINUED) Tax Allocation Bonds A summary of changes in tax allocation bonds at June 30, 2025, was as follows:

	Balance			Balance		Amount
	June 30, 2024	Additions	Deletions	June 30, 2025	Due Within One Year
2003 TARBs, $15,745,000	$ 14,870,000	$ -	$ 910,000	$ 13,960,000	$ 1,145,000
2017 A TARBs, $52,390,000	35,690,000	-	6,630,000	29,060,000	6,910,000
2017 B TARBs, $140,130,000	84,670,000	-	5,585,000	79,085,000	5,710,000
2017 H-A TARBs, $7,365,000	4,570,000	-	475,000	4,095,000	505,000
Subtotal	139,800,000	-	13,600,000	126,200,000	14,270,000
Add: Unamortized bond premium	3,996,060	-	562,560	3,433,500	-
Less: Unamortized bond discount	(1,374,437)	-	(79,677)	(1,294,760)	-
Total	$ 142,421,623	$ -	$ 14,082,883	$ 128,338,740	$ 14,270,000

The tax allocation revenues bonds issued before 2011 (i.e., before the dissolution of the Dissolved RDA) were issued by the Palm Desert Financing Authority, the proceeds of which were loaned to the Dissolved RDA for financing or refinancing redevelopment projects. Pursuant to the bond documents, the Authority's bonds were secured by the Dissolved RDA's (and after dissolution, are secured by the Successor Agency's) repayment of the loans were secured by tax increment (after the Dissolved RDA's dissolution, are secured by certain moneys deposited in the RPTTF, see Notes 19) and other funds as provided in the bond documents. In January 2017, the Successor Agency issued four series of bonds: (i) the Tax Allocation Refunding Bonds, 2017 Series A, in the aggregate principal amount of $52,390,000 (the “2017A Bonds”), (ii) the Taxable Tax Allocation Refunding Bonds, 2017 Series B, in the aggregate principal amount of $140,130,000 (the “2017B Bonds”), (iii) the Tax Allocation Refunding Bonds, 2017 Series H-A, in the aggregate principal amount of $7,365,000 (the “2017H-A Bonds”); and (iv) the Taxable Tax Allocation Refunding Bonds, 2017 Series H-B, in the aggregate principal amount of $45,815,000 (the “2017H-B Bonds”). As further described below, the 2017 refunding refunded all of the outstanding tax allocation revenue bonds, except for the Project Area No. 2 2003 Bonds. None of these bonds or any interest thereon are a debt of the City, the State of California or any of its political subdivisions (except for the Successor Agency), and none the City, the State of California nor any of its political subdivisions (except for the Successor Agency) is liable on the bonds, nor in any event shall the bonds and interest therein be payable out of any funds or properties other than those provided under the respective bond documents. The remaining outstanding Project Area No. 2 2003 Bonds were insured by MBIA Insurance Corporation ("MBIA"). On February 18, 2009, MBIA announced the restructuring of its financial guaranty insurance operations into two separately capitalized sister companies, with one entity (MBIA Illinois) assuming the risk associated with its U.S. municipal exposures, and the other (MBIA Corp) insuring the remainder of the portfolio. Effective March 19, 2009, MBIA Illinois was renamed National Public Finance Guarantee Corporation ("NPFGC"). Some (but not all) of the maturities of each series of the 2017 Bonds are insured by Build America Mutual Assurance Company. ### 2003 Series Tax Allocation Revenue Bonds (Project Area No. 2) On March 26, 2003, the Palm Desert Financing Authority issued $15,745,000 of Tax Allocation Revenue Bonds (Project Area No. 2) 2003 Series. The Palm Desert Financing Authority loaned the bond proceeds to the Dissolved RDA to fund various redevelopment capital projects in Project Area No. 2. ===== PAGE 110 ===== ## NOTE 17 - SUCCESSOR AGENCY DISCLOSURES (CONTINUED) The future debt service requirements on the 2003 Series Tax Allocation Revenue Bonds (Project Area No. 2) are as follows:

Year Ending\nJune 30,	Principal	Interest	Total
2026	$ 1,145,000	$ 662,203	$ 1,807,203
2027	1,340,000	604,738	1,944,738
2028	1,405,000	538,625	1,943,625
2029	1,475,000	466,625	1,941,625
2030	1,550,000	391,000	1,941,000
2031-2033	7,045,000	726,625	7,771,625
Total	$ 13,960,000	$ 3,389,816	$ 17,349,816

## 2017 Series A Tax Allocation Refunding Bonds On January 31, 2017, the Successor Agency issued the 2017A Bonds, in the principal amount of $52,390,000. The proceeds from the 2017A Bonds were utilized to refund the Project Area No. 1 2002A Bonds, Project Area No. 1 2003 Bond, Project Area No. 1 2004 Bonds, the Project Area No. 2 2002A Bonds, and the Project Area No. 4 1998 Bonds and pay certain costs associated with the issuance of the bonds. Interest rates on the bonds vary from 2.00% to 5.00% per annum payable semi-annually on April 1 and October 1, commencing April 1, 2017, with principal maturing annually on October 1. As of June 30, 2024, the outstanding principal balance on the bonds $29,060,000. The future debt service requirements on the 2017A Bonds are as follows:

Year Ending\nJune 30,	Principal	Interest	Total
2026	$ 6,910,000	$ 1,280,250	$ 8,190,250
2027	5,245,000	976,375	6,221,375
2028	5,495,000	707,875	6,202,875
2029	4,055,000	469,125	4,524,125
2030	3,590,000	278,000	3,868,000
2031	3,765,000	94,125	3,859,125
Total	$ 29,060,000	$ 3,805,750	$ 32,865,750

## 2017 Series B Tax Allocation Refunding Bonds On January 31, 2017, the Successor Agency issued the 2017B Bonds, in the principal amount of $140,130,000. The proceeds from the 2017B Bonds were utilized refund the Project Area No. 1 2006A Bonds, the Project Area No. 2 2006A Bonds, the Project Area No. 2 2006D Bonds, the Project Area No. 3 2003 Bonds, the Project Area No. 3 2006A Bonds, the Project Area No. 3 2006B Bonds, the Project Area No. 3 2006C Bonds, the Project Area No. 4 2001 Bonds, the Project Area No. 4 2006A Bonds, and the Project Area No. 4 2006B Bonds and pay certain costs associated with the issuance of the bonds. Interest rates on the bonds vary from 1.25% to 4.25% per annum payable semi-annually on April 1 and October 1, commencing April 1, 2017, with principal maturing annually on October 1. As of June 30, 2025, the outstanding principal balance on the bonds is $79,085,000. ===== PAGE 111 =====

NOTE 17 - SUCCESSOR AGENCY DISCLOSURES (CONTINUED)

Year Ending June 30,	Principal	Interest	Total
2026	$ 5,710,000	$ 2,979,956	$ 8,689,956
2027	8,060,000	2,751,156	10,811,156
2028	4,790,000	2,531,319	7,321,319
2029	5,055,000	2,355,872	7,410,872
2030	5,975,000	2,152,219	8,127,219
2031-2034	26,060,000	6,169,013	32,229,013
2035-2039	21,420,000	1,738,463	23,158,463
2040-2042	2,015,000	130,794	2,145,794
Total	$ 79,085,000	$ 20,808,792	$ 99,893,792

## 2017 Series H-A Tax Allocation Refunding Bonds On January 31, 2017, the Successor Agency issued the 2017H-A Bonds, in the principal amount of $7,365,000. The proceeds from the 2017H-A Bonds were used to refund the 2002 Housing Bonds and pay certain costs associated with the issuance of the bonds. Interest rates on the bonds vary from 2.00% to 5.00% per annum payable semi-annually on April 1 and October 1, commencing April 1, 2017, with principal maturing annually on October 1. As of June 30, 2025, the outstanding principal balance on the bonds is $4,095,000. The future debt service requirements on the 2017 Series H-A Tax Allocation Refunding Bonds are as follows:

Year Ending

Year Ending\nJune 30,	Principal	Interest	Total
2026	$ 505,000	$ 168,394	$ 673,394
2027	525,000	142,644	667,644
2028	555,000	115,644	670,644
2029	585,000	87,144	672,144
2030	615,000	57,144	672,144
2031-2032	1,310,000	42,497	1,352,497
Total	$ 4,095,000	$ 613,467	$ 4,708,467

===== PAGE 112 ===== ## NOTE 18 - RESTATEMENT OF BEGINNING BALANCE During the current fiscal year, the City determined that certain expenditures incurred in fiscal year 2024 related to ongoing construction projects and subscriptions in progress had been expensed rather than capitalized as construction in progress. The City adjusted the beginning balance of net position for the governmental activities as of June 30, 2024 has been restated. The adjustment increased capital assets and beginning net position by $12,069,324. In addition, the City restated the beginning fund balance for the Restricted Capital Project Fund by $277,723 to capture accrued interest revenue that was not recorded in fiscal year 2024.

	Net Position		Net Position
	June 30, 2024 as previously reported	Error Correction	June 30, 2024 as restated
Government-wide
Governmental activities	$ 733,146,189	$ 12,347,047	$ 745,493,236
Governmental Funds
Restricted Capital Project Fund	$ 47,233,177	$ 277,723	$ 47,510,900

## NOTE 19 - SUBSEQUENT EVENTS The City evaluated subsequent events for recognition and disclosure through January 30, 2026, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2025, that required recognition or disclosure in these financial statements. ===== PAGE 113 ===== ## UNIDALDESERT ## This page intentionally left blank ===== PAGE 114 =====

	2025	2024	2023	2022
Measurement Date	6/30/2024	6/30/2023	6/30/2022	6/30/2021
TOTAL PENSION LIABILITY
Service cost	$ 2,533,663	$ 2,235,788	$ 1,976,289	$ 2,042,043
Interest on total pension liability	11,137,558	10,733,434	10,122,299	10,005,168
Changes of benefit terms	-	105,799	-	-
Changes of assumptions	-	-	4,699,855	-
Difference between expected and actual experience	1,408,050	4,624,824	(2,563,805)	116,967
Benefit payments, including refunds of employee contributions	(8,858,458)	(8,480,159)	(7,723,744)	(7,041,890)
Net change in total pension liability	6,220,813	9,219,686	6,510,894	5,122,288
Total pension liability-beginning	163,168,247	153,948,561	147,437,667	142,315,379
Total pension liability-ending (a)	169,389,060	163,168,247	153,948,561	147,437,667
PLAN FIDUCIARY NET POSITION
Contributions-employer	4,510,683	4,539,654	4,020,131	4,729,858
Contributions-employee	1,092,559	868,122	791,130	745,959
Net investment income	11,419,049	7,061,290	(9,592,025)	24,010,711
Benefit payments, including refunds of employee contributions	(8,858,458)	(8,480,159)	(7,723,744)	(7,041,890)
Net plan to plan resource movement	-	-	-	-
Administrative expense	(96,970)	(84,762)	(79,643)	(105,400)
Other miscellaneous income/(expense)	-	-	-	-
Net change in fiduciary net position	8,066,863	3,904,145	(12,584,151)	22,339,238
Plan fiduciary net position-beginning	119,170,887	115,266,742	127,850,893	105,511,655
Plan fiduciary net position-ending (b)	127,237,750	119,170,887	115,266,742	127,850,893
Net pension liability/(asset) (a) - (b)	$ 42,151,310	$ 43,997,360	$ 38,681,819	$ 19,586,774
Plan fiduciary net position as a percentage of the total pension liability	75.1%	73%	75%	87%
Covered payroll	$ 11,030,033	$ 10,601,359	$ 9,621,662	$ 10,386,791
Plan net pension liability/(asset) as a percentage of covered payroll	382%	415%	402%	189%

## Notes to Schedule of Changes in the Net Pension Liability and Related Ratios: Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the measurement date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. Changes of Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016. ===== PAGE 115 =====

2021	2020	2019	2018	2017	2016
6/30/2020	6/30/2019	6/30/2018	6/30/2017	6/30/2016	6/30/2015
$ 2,086,683	$ 1,973,971	$ 2,196,462	$ 2,204,265	$ 2,076,964	$ 2,125,437
9,645,145	9,261,660	8,797,867	8,558,529	8,327,823	8,223,320
-	-	-	-	-	-
-	-	(1,148,708)	7,367,723	-	(2,091,348)
533,373	1,762,387	(594,882)	(1,895,482)	(4,259,317)	(2,378,254)
(6,540,485)	(6,383,377)	(5,934,338)	(5,401,531)	(4,801,252)	(4,597,025)
5,724,716	6,614,641	3,316,401	10,833,504	1,344,218	1,282,130
136,590,663	129,976,022	126,659,621	115,826,117	114,481,899	113,199,769
142,315,379	136,590,663	129,976,022	126,659,621	115,826,117	114,481,899
4,521,813	5,963,737	5,407,412	5,303,371	4,257,322	4,065,411
805,528	791,794	812,447	828,467	870,981	878,171
5,102,524	6,322,815	7,555,653	8,800,663	448,184	1,682,498
(6,540,485)	(6,383,377)	(5,934,338)	(5,401,531)	(4,801,252)	(4,597,025)
-	-	(222)	-	-	-
(143,465)	(67,893)	(136,651)	(115,573)	(47,263)	(87,279)
-	222	(259,502)	-	-	-
3,745,915	6,627,298	7,444,799	9,415,397	727,972	1,941,776
101,765,740	95,138,442	87,693,643	78,278,246	77,550,274	75,608,498
105,511,655	101,765,740	95,138,442	87,693,643	78,278,246	77,550,274
$ 36,803,724	$ 34,824,923	$ 34,837,580	$ 38,965,978	$ 37,547,871	$ 36,931,625
74%	75%	73%	69%	68%	68%
$ 10,353,849	$ 9,807,088	$ 10,751,687	$ 10,684,238	$ 11,342,713	$ 11,448,621
356%	355%	324%	365%	331%	323%

===== PAGE 116 =====

	2025	2024	2023	2022
Measurement Date	6/30/2024	6/30/2023	6/30/2022	6/30/2021
TOTAL OPEB LIABILITY
Service cost	$ 383,189	$ 357,354	$ 294,337	$ 378,897
Interest on total pension liability	1,287,056	1,193,064	1,205,943	1,161,531
Changes of benefit terms	3,055,225	-	-	(910,834)
Changes of assumptions	-	170	1,691,792	1,053,761
Difference between expected and actual experience	(997,730)	1,327,257	-	-
Benefit payments, including refunds of employee contributions	(1,306,991)	(1,082,459)	(944,960)	(819,968)
Net change in total OPEB liability	2,420,749	1,795,386	2,247,112	863,387
Total OPEB liability-beginning	23,671,335	21,875,949	19,628,837	18,765,450
Total OPEB liability-ending (a)	26,092,084	23,671,335	21,875,949	19,628,837
PLAN FIDUCIARY NET POSITION
Contributions-employer	1,306,991	1,108,988	1,230,895	1,140,548
Net investment income	1,783,056	748,799	(3,022,583)	3,878,532
Benefit payments, including refunds of employee contributions	(1,306,991)	(1,082,459)	(944,960)	(819,968)
Administrative expense	(7,014)	(6,023)	(6,034)	(7,193)
Other miscellaneous income/(expense)	-	-	-	-
Net change in fiduciary net position	1,776,042	769,305	(2,742,682)	4,191,919
Plan fiduciary net position-beginning	21,789,415	21,020,110	23,762,792	19,570,873
Plan fiduciary net position-ending (b)	23,565,457	21,789,415	21,020,110	23,762,792
Net OPEB liability/(asset) (a) - (b)	$ 2,526,627	$ 1,881,920	$ 855,839	$ (4,133,955)
Plan fiduciary net position as a percentage of the total OPEB liability	90.3%	92.0%	96.1%	121.1%
Covered payroll	$ 15,090,207	$ 12,780,729	$ 11,208,147	$ 10,881,697
Plan net OPEB liability/(asset) as a percentage of coveredpayroll	16.7%	14.7%	7.6%	(38.0)%

Notes to Schedule of Changes in the Net OPEB Liability/(Asset) and Related Ratios: Benefit Changes: None Changes in Assumptions: None1 Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown. ===== PAGE 117 =====

2021	2020	2019	2018
6/30/2020	6/30/2019	6/30/2018	6/30/2017
$ 366,971	$ 369,299	$ 357,675	$ 346,417
1,117,500	1,256,431	1,199,747	1,144,106
-	-	-	-
-	2,552,767	-	-
-	(4,066,457)	-	-
(752,486)	(756,759)	(696,845)	(653,187)
731,985	(644,719)	860,577	837,336
18,033,465	18,678,184	17,817,607	16,980,271
18,765,450	18,033,465	18,678,184	17,817,607
1,280,453	2,408,260	1,381,501	1,255,960
977,487	1,226,966	843,319	902,331
(752,486)	(756,759)	(696,845)	(653,187)
(9,045)	(3,515)	(7,371)	(6,541)
-	-	(18,115)	-
1,496,409	2,874,952	1,502,489	1,498,563
18,074,464	15,199,512	13,697,023	12,198,460
19,570,873	18,074,464	15,199,512	13,697,023
$ (805,423)	$ (40,999)	$ 3,478,672	$ 4,120,584
104.3%	100.2%	81.4%	76.9%
$ 11,382,103	$ 10,546,052	$ 10,741,786	$ 10,584,400
(7.1)%	(0.4)%	32.4%	38.9%

===== PAGE 118 ===== ## UNIDALDESERT ## This page intentionally left blank ===== PAGE 119 =====

Fiscal Year	Actuarially Determined Contribution	Actual Employer Contributions	Contribution Deficiency (Excess)	Covered Payroll	Contribution as a % of Covered Payroll
	Miscellaneous Agent, Multiple-Employer Pension Plan
2025	$ 4,510,683	$ 5,697,799	$ (1,187,116)	$ 12,751,196	44.7%
2024	4,539,654	4,669,126	(129,472)	11,030,033	42.3%
2023	4,574,753	4,574,753	-	10,601,359	43.2%
2022	4,123,142	4,123,142	-	9,621,662	42.9%
2021	4,936,652	4,729,797	206,855	10,386,791	45.5%
2020	4,736,668	4,521,813	214,855	10,353,849	43.7%
2019	4,225,204	5,963,737	(1,738,533)	9,807,088	60.8%
2018	4,219,764	5,396,908	(1,177,144)	10,751,687	50.2%
2017	3,550,127	5,303,371	(1,753,244)	10,684,238	49.6%
2016	3,585,082	4,257,322	(672,240)	11,342,713	37.5%

Notes to Schedule: Valuation Date: June 30, 2023 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal

Amortization method/period			Level percentage of payroll, closed
Asset valuation method			Fair Value
Inflation			2.30%
Salary increases			Varies by entry age and service
Payroll growth			2.80%
Investment rate of return			6.8% net of pension investment and administrative expenses, including inflation.
Retirement age			The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
Mortality			The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporates full generational mortality improvements using 80% of Scale MP-2020 published by the Society of Actuaries.
Single Employer OPEB Plan
2025	$	533,751	$	1,403,495	$	(869,744)	$ 16,637,603
2024		533,751		1,306,991		(773,240)	15,090,207
2023		452,627		1,123,177		(670,550)	12,780,729
2022		285,935		1,230,895		(944,960)	11,208,147
2021		320,508		1,140,548		(820,040)	10,881,697
2020		527,966		1,340,978		(813,012)	11,382,103
2019		651,501		2,408,260		(1,756,759)	10,546,052
2018		684,656		1,381,501		(696,845)	10,741,786

Notes to Schedule: Actuarial cost method Entry Age Normal Level percent of payroll over a closed rolling 30-year period Amortization method/period Asset valuation method 2.50% 3.00% per anum, in aggregate Inflation Salary increases 5.50% per annum Payroll growth Assumed to start at 6.5% and grade down by 0.5% each year to 5% in 2024 Investment rate of return The City offers the same plans to its retirees as to its active employees, with the general exception that upon reaching age 65 and becoming eligible for Medicare, the retiree must join one of the Medicare Supplement coverages under PEMHCA. Retirement age Mortality rates used were those published by CalPERS under the 2017 Experience study and projected using the MacLeod Watts Scale 2018 applied generationally. ===== PAGE 120 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Resources (inflows):
Taxes
Property tax	$ 11,501,654	$ 11,500,654	$ 11,352,162	$ (148,492)
Property transfer tax	1,122,435	1,122,435	797,229	(325,206)
Property tax in lieu	5,527,780	5,527,780	5,746,578	218,798
Timeshare mitigation fee	1,754,107	3,465,702	3,465,702	-
Sales tax	25,000,000	27,000,000	31,379,891	4,379,891
Business license tax	1,100,000	1,100,350	1,334,949	234,599
Job valuation fees	106,500	56,500	54,270	(2,230)
Transient occupancy tax	22,916,000	22,798,500	23,881,245	1,082,745
Franchises	3,400,000	3,400,000	3,729,388	329,388
Penalties and interest on taxes	43,000	63,000	84,191	21,191
Total Taxes	72,471,476	76,034,921	81,825,605	5,790,684
Licenses and Permits
Building permits	1,428,300	1,100,300	1,237,713	137,413
Grading permits	11,000	36,000	28,467	(7,533)
Encroachment permits	85,500	130,500	118,827	(11,673)
Miscellaneous permits	800	1,450	1,125	(325)
Business regulatory permits	16,000	16,000	21,985	5,985
Golf cart permits	1,300	1,300	2,210	910
Valet parking permits	700	700	225	(475)
Total Licenses and Permits	1,543,600	1,286,250	1,410,552	124,302
Intergovernmental
State mandate cost	-	-	263,956	263,956
Motor vehicle in-lieu fees	61,000	61,000	80,237	19,237
Monthly parking bail	5,000	5,000	10,971	5,971
Reimbursement RDA costs	597,015	597,015	597,015	-
Other reimbursements	735,500	1,088,000	1,017,162	(70,838)
Total Intergovernmental	1,398,515	1,751,015	1,969,341	218,326
Rental income	162,329	162,329	134,823	(27,506)
Charges for Services
Subdivision fees	382,999	382,999	514,289	131,290
Zoning fees	68,000	61,000	64,425	3,425
Plan check fees	408,000	408,000	607,498	199,498
Sale of maps and publications	3,500	4,000	9,803	5,803
Microfilm fees	100	100	-	(100)
Vehicle impact fees	430,000	430,000	755,972	325,972
Other fees	54,000	174,500	216,170	41,670
Total Charges for Services	1,346,599	1,460,599	2,168,157	707,558
Investment Earnings
Interest Income	4,500,000	5,000,000	5,660,055	660,055
Interest on notes receivable	200,000	200,000	143,090	(56,910)
Total Investment Earnings	4,700,000	5,200,000	5,803,145	603,145
Fines and Forfeitures
Vehicle code fines	22,000	22,000	44,813	22,813
Municipal court fines	3,000	11,000	6,493	(4,507)
VICR fees	67,000	77,000	99,482	22,482
Total Fines and Forfeitures	92,000	110,000	150,788	40,788
Miscellaneous
Code compliance	50,000	25,000	56,754	31,754
Certificate of compliance fee	300	300	-	(300)
Nuisance abatement fee	5,600	4,000	-	(4,000)
Abandoned vehicle abatement	24,999	44,999	45,574	575
Other revenue	259,759	434,668	738,873	304,205
Total Miscellaneous	340,658	508,967	841,201	332,234
Transfer in	1,167,700	2,680,140	2,491,425	(188,715)
Lease and subscription arrangements	-	-	140,618	140,618
Amounts available for appropriations	83,222,877	89,194,221	96,935,655	7,600,816

===== PAGE 121 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Charges to appropriation (outflow):
Current:
General government
City Council	350,401	420,244	332,247	87,997
City Clerk	1,192,865	1,353,119	1,224,963	128,156
Legislative advocacy	40,845	40,845	36,000	4,845
Elections	165,000	149,500	104,350	45,150
City attorney	317,520	320,916	320,916	-
Legal special services	353,590	838,590	789,001	49,589
City manager	2,077,045	1,341,928	1,221,146	120,782
Finance	2,436,288	2,629,456	3,430,188	(800,732)
Independent audit	100,000	161,731	137,088	24,643
Human resources	1,117,478	1,121,837	939,615	182,222
General services	4,967,875	6,468,574	5,904,180	564,394
Information technology	3,498,426	6,712,429	3,915,867	2,796,562
Unemployment insurance	10,000	25,000	24,597	403
Insurance	1,254,623	1,135,423	1,126,169	9,254
Community promotions	557,720	557,720	440,314	117,406
Public affairs and marketing	2,206,326	2,096,713	1,929,768	166,945
Visitor services	12,930	12,930	8,461	4,469
Economic development	1,776,934	1,980,660	1,667,046	313,614
Code enforcement	946,494	1,089,962	1,032,843	57,119
Permit center	951,321	1,117,942	1,010,934	107,008
Contributions	1,979,025	1,979,290	1,917,955	61,335
Capital projects	4,729,818	6,028,134	4,761,023	1,267,111
Total General Government	31,042,524	37,582,943	32,274,671	5,308,272
Public safety
Police services	22,294,902	22,862,461	22,308,994	553,467
Animal regulation	410,000	592,000	490,341	101,659
Traffic safety	1,469,949	1,854,758	1,520,765	333,993
Building and safety	1,318,941	1,526,558	1,439,413	87,145
Community safety	224,100	304,100	270,650	33,450
Total Public Safety	25,717,892	27,139,877	26,030,163	1,109,714
Parks, Recreation, and Culture
Civic center park	2,199,500	2,157,248	1,665,519	491,729
Citywide park maintenance	1,487,000	1,665,475	1,366,158	299,317
Landscape services	3,231,294	3,679,709	3,255,847	423,862
Total Parks, Recreation, and Culture	6,917,794	7,502,432	6,287,524	1,214,908
Public works
Public works	1,827,840	2,035,705	1,909,389	126,316
Public works streets	2,637,730	2,928,077	2,676,968	251,109
ADA improvements	50,000	50,000	50,000	-
Parking lot improvements	200,000	368,380	171,909	196,471
Corporation yard	214,700	261,200	199,881	61,319
Public works fleet	412,500	483,615	409,854	73,761
Building maintenance	1,287,958	1,058,830	890,217	168,613
Portola community center	219,750	219,750	173,231	46,519
Total Public Works	6,850,478	7,405,557	6,481,449	924,108
Capital Outlay	544,000	420,885	252,264	168,621
Debt service:
Principal	-	-	240,200	(240,200)
Interest and fiscal charges	-	-	8,991	(8,991)
Interfund transfers	11,990,324	31,846,028	31,008,583	837,445
Total charges to appropriations	83,063,012	111,897,722	102,583,845	9,313,877
Net change in fund balance	$ 159,865	$ (22,703,501)	(5,648,190)	$ 17,055,311
Fund balance-beginning			126,353,653
Fund balances-ending			$ 120,705,463

===== PAGE 122 =====

	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Taxes	$ 11,402,490	$ 11,402,490	$ 13,045,657	$ 1,643,167
Special assessments collected	2,474,050	2,474,050	2,188,202	(285,848)
Intergovernmental revenues	1,450,000	1,450,000	1,442,674	(7,326)
Charges for services	2,900,000	2,900,000	4,424,656	1,524,656
Investment earnings	500,000	500,000	1,419,450	919,450
Total revenues	18,726,540	18,726,540	22,520,639	3,794,099
EXPENDITURES
Current:
Public safety	22,239,138	22,253,715	18,941,495	3,312,220
Capital outlay	1,810,000	21,785,115	3,701,001	18,084,114
Total expenditures	24,049,138	44,038,830	22,642,496	21,396,334
Excess (deficiency) of revenues over (under) expenditures	(5,322,598)	(25,312,290)	(121,857)	25,190,433
OTHER FINANCING SOURCES (USES)
Transfers in	5,000,000	5,000,000	5,000,000	-
Total other financing sources (uses)	5,000,000	5,000,000	5,000,000	-
Net change in fund balance	$ (322,598)	$ (20,312,290)	4,878,143	$ 25,190,433
Fund balance-beginning			22,353,727
Fund balances-ending			$ 27,231,870

===== PAGE 123 =====

	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Charges for services	$ -	$ -	$ 68,979	$ 68,979
Investment earnings	280,600	1,952,000	1,786,096	(165,904)
Miscellaneous	-	35,328	37,995	2,667
Total revenues	280,600	1,987,328	1,893,070	(94,258)
EXPENDITURES
Current:
Housing	3,543,650	11,929,080	52,392	11,876,688
Capital outlay	300,000	300,000	12,500	287,500
Total expenditures	3,843,650	12,229,080	64,892	12,164,188
Net change in fund balance	$ (3,563,050)	$ (10,241,752)	1,828,178	$ 12,069,930
Fund balance-beginning			51,941,714
Fund balances-ending			$ 53,769,892

===== PAGE 124 =====

	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Fees and rentals	$ 9,663,031	$ 9,663,031	$ 9,402,683	$ (260,348)
Investment earnings	70,600	70,600	776,883	706,283
Miscellaneous	-	-	97,025	97,025
Total revenues	9,733,631	9,733,631	10,276,591	542,960
EXPENDITURES
Current:
Housing	13,458,975	16,091,568	8,623,482	7,468,086
Total expenditures	13,458,975	16,091,568	8,623,482	7,468,086
Excess (deficiency) of revenues over (under) expenditures	(3,725,344)	(6,357,937)	1,653,109	8,011,046
OTHER FINANCING SOURCES (USES)
Transfers out	(493,772)	(493,772)	(380,542)	113,230
Total other financing sources (uses)	(493,772)	(493,772)	(380,542)	113,230
Net change in fund balance	$ (4,219,116)	$ (6,851,709)	1,272,567	$ 8,124,276
Fund balance-beginning			17,097,718
Fund balances-ending			$ 18,370,285

===== PAGE 125 ===== ## NOTE 1: BUDGETS AND BUDGETARY ACCOUNTING The City used the following procedures in establishing the budgetary data reported in the financial statements: 1. Before the beginning of the fiscal year, the City Manager submits to the City Council a proposed budget for the year commencing the following July 1. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is subsequently adopted through passage of a resolution. 4. Expenditures for the General Fund cannot exceed amounts budgeted at the departmental level, which is the legal level of control. For other funds, expenditures cannot exceed the total amount budgeted for each fund, which is the legal level of control. The City Manager is authorized to transfer appropriations (without council approval) between an object of a General Fund Department and authority to adjust intra-and outer departmental budgeted line items, as well as inter-fund transfers, provided such adjustments do not exceed the total approved budget. The City Council approves all other changes. Annual appropriation amounts lapse at year-end. 5. Encumbrances and continuing appropriations are rebudgeted as of July 1, by Council action. 6. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds except for certain special revenue funds and capital projects funds, which adopt project length budgets and debt service funds that are not budgeted as effective budgetary control is achieved through debt indenture provisions. The following funds did not have legally adopted budgets during the current fiscal year: Capital Projects Fund - Special Assessment District ===== PAGE 126 ===== ## UNIDALDESERT ## This page intentionally left blank ===== PAGE 127 ===== OTHER GOVERNMENTAL FUNDS COMBINING STATEMENTS ===== PAGE 128 ===== # OTHER GOVERNMENTAL FUNDS - SPECIAL REVENUE Special Revenue Funds are used to account for proceeds of specific revenue sources other than expendable trust that are legally restricted to expenditures for specific purposes. Traffic Safety Fund – Traffic and court fines are collected in these funds. A transfer from this Fund to the General Fund is made at the end of the fiscal year by council action to be applied toward the eligible expenditures permitted by law. Gas Tax Fund – Portions of the tax rate per gallon levied by the State of California on all gasoline purchases are allocated to cities throughout the State. These funds are restricted to expenditure for transit and street-related purposes. Measure A Fund – This fund is used to account for the half-cent sales tax approved by the voters of Riverside County in 1988. Funds are restricted for local street and road expenditures only. Housing Mitigation Fee Fund – This fund is used to account for fees collected from construction of commercial and office buildings for low and moderate income mitigation purposes to be used strictly for projects and programs that benefit the low and moderate income households. Community Development Block Grant Fund – This fund is used to account for the receipts and expenditures of CDBG funds received from the U.S. Department of Housing and Urban Development. Child Care Program Fund – This fund is used to collect funds from developers for the purpose of providing child care programs. Public Safety Police Grants Fund – This fund is used to account for grants received from the U.S. Department of Justice under the Local Law Enforcement Block Grant Program for the purpose of purchasing equipment related to public safety. New Construction Tax Fund – This fund is used to account for tax collected upon application to the City for a building permit from every person/entity for the construction of any new building, addition or trailer space in the city according to a fee schedule. Its use is restricted for the acquisition and development of public facilities such as parks, playgrounds and public structures. Planned Drainage Fund – This fund is used to account for off-site drainage fees based on an established fee schedule collected prior to approval of the final map in the case of land being subdivided or prior to the issuance of a building permit in the case of construction or improvement of subdivided land. Parks and Recreational Facilities Fund – This fund is used to account for fees collected for residential and subdivision developments collected either at the time grading permits are paid or prior to the approval of the final map. Its use is restricted for expenditures related to park development, maintenance and equipment. Traffic Signals Fund – This fund is used to account for fees collected for residential, commercial and industrial developments either at the time grading permits are paid or prior to the approval of the final map. Its use is restricted for expenditures related to the acquisition and maintenance of traffic signals. Fire Facilities Restoration Fund – This fund is used to collect funds from developers for the purpose of construction, restoration and purchase of equipment for fire stations within the City. Recycling Fund – This fund is used to account for resources resulting from lower landfill tipping fees which have been reduced to zero in 2013, and State grant funds. Funds will be utilized for purposes of promoting recycling and recycling related activities. ===== PAGE 129 ===== Energy Independence Loan Fund – This fund is used to provide funding for the AB811 Energy Loans and collect assessments from those AB811 loans through property tax collections. The assessments collected will be used to service debt issued and to provide additional funding for the AB811 loans. Air Quality Management Fund – This fund accounts for receipts from South Coast Air Quality Management District, sixty percent of which is disbursed to the Coachella Valley Association of Governments. Aquatic Center Fund – This fund is used to account for revenues and expenditures for the City's aquatic facility. Cannabis Compliance Fund – This fund is used to account for revenues and expenditures for the City's cannabis compliance activity. EI Paseo Assessment District Fund – This fund is used to collect assessments on all business establishments located within the boundaries set for the El Paseo Parking and business improvement area based on a fee schedule established for the various types of businesses. Proceeds from all charges are used for the promotion of business activities in the area. Various Landscape and Lighting District Fund – These funds are used to account for expenditures and receipts of property taxes and service fees levied to the property owners in the various landscaping and lighting districts, which were formed to provide landscaping and street lighting maintenance. Individual landscaping and lighting funds are set up for Districts No 1 through 17. Affordable Housing Fund – This fund is used to account for the management and operation of the affordable housing portfolio. Permanent Local Housing Allocation Grant Fund – This fund provides a permanent source of funding to cities and counties to help meet the need for affordable housing and to increase the supply of affordable housing units. Opioid Settlement Fund – This fund is used to account for the receipts and expenditures related to the Nationwide Class Action Opioid Settlement intended to be used to address the nation's continuing opioid crisis. Library Services Fund – This fund is used to account for revenues and expenditures for the City's library facility. ===== PAGE 130 ===== # OTHER GOVERNMENTAL FUNDS - CAPITAL PROJECTS Capital Projects Funds are used to account for the acquisition and construction of major capital facilities, except for those financed by certain Special Revenue and Enterprise funds. Capital Projects Reserve Fund - This fund is used to account for resources and expenditures for capital improvement projects that are related to the acquisition and development of public facilities, infrastructure and equipment. Drainage Facilities Fund - This fund is used to account for resources and expenditures for planned capital improvement projects that are under the Master Drainage Plan. Economic Development Fund - This fund is used to account for façade enhancement projects for Palm Desert businesses utilizing funds from the sales of certain City-owned properties. Parks and Recreational Facilities Fund - This fund is used to account for resources and expenditures for capital improvement projects that are related to park development, maintenance and equipment. Art in Public Places Fund - This fund is used to account for fees collected from residential, commercial and public facilities development except for street and drainage projects. Its use is restricted for acquisition, installation, improvement and maintenance of artwork to be displayed in the City, the administration of the program and community public art education programs. Signalization Fund - This fund is used to account for resources and expenditures for capital improvement projects that are related to the acquisition and maintenance of traffic signals. Capital Golf Fund - This fund is used to offset the cost of capital improvements, equipment purchases, perimeter maintenance, pay off assessments and other nonrecurring costs that will arise as a result of Desert Willow Golf Course Resort. Funding sources for the Golf Course Maintenance Fund are collections from the IROC and Standard Vacation Ownership, Inc. time-share project. Buildings Fund - This fund is used to account for resources and expenditures for capital improvement projects that are related to the improvement and maintenance of public facilities and structures. Library Fund - This fund is used to account for resources and expenditures for capital improvement projects that are related to the purchase of library resources for the Multi-Agency Library. Special Assessment District Fund - This fund is used to account for the construction of public improvements from proceeds resulting from the creation of various assessment Districts. Assessment District No. 94-3 Merano Silver Spur Ranch Highlands Undergrounding CFD University Special Assessment Assessment 29 University Park ===== PAGE 131 ===== ## OTHER GOVERNMENTAL FUNDS - DEBT SERVICE FUND City Highlands Underground Fund – This fund is used to account for the resources and payment for debt related to Highlands Undergrounding. ===== PAGE 132 =====

	Special Revenue Funds
	Traffic Safety	Gas Tax	Measure A	Housing Mitigation Fee
ASSETS
Cash and investments	$ 3,881	$ 5,939,706	$ 17,636,719	$ 3,244,054
Receivables:
Accounts	-	-	-	300
Assessments	-	-	-	-
Accrued interest	-	-	-	-
Loans	-	-	-	-
Deposits	-	-	-	-
Prepaid expenses	-	-	-	-
Due from other governments	77	495,027	581,951	-
Advances to other funds	-	-	-	-
Inventories	-	-	-	-
Restricted assets:
Cash with fiscal agent	-	-	-	-
Total assets	$ 3,958	$ 6,434,733	$ 18,218,670	$ 3,244,354
LIABILITIES
Accounts payable	$ -	$ 332,396	$ 1,115,871	$ -
Unearned revenue	-	-	-	-
Due to other funds	-	-	-	-
Advances from other funds	-	-	-	-
Total liabilities	-	332,396	1,115,871	-
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue	-	-	-	-
Total deferred inflows of resources	-	-	-	-
FUND BALANCES
Nonspendable	-	-	-	-
Restricted total	3,958	6,102,337	17,102,799	3,244,354
Committed	-	-	-	-
Assigned	-	-	-	-
Total fund balances	3,958	6,102,337	17,102,799	3,244,354
Total liabilities, deferred inflows, and fund balances	$ 3,958	$ 6,434,733	$ 18,218,670	$ 3,244,354

Special Revenue Funds

===== PAGE 133 =====

	Special Revenue Funds
	Community Development Block Grant	Child Care Program	Public Safety Police Grants	New Construction Tax
ASSETS
Cash and investments	$ -	$ 962,918	$ 386,531	$ 1,883,822
Receivables:
Accounts	-	-	-	-
Assessments	-	-	-	-
Accrued interest	-	-	-	-
Loans	-	-	-	-
Deposits	-	-	-	-
Prepaid expenses	-	-	-	-
Due from other governments	135,354	-	-	-
Advances to other funds	-	-	-	-
Inventories	-	-	-	-
Restricted assets:
Cash with fiscal agent	-	-	-	-
Total assets	$ 135,354	$ 962,918	$ 386,531	$ 1,883,822
LIABILITIES
Accounts payable	$ 12,097	$ -	$ 136,584	$ 16,771
Unearned revenue	-	-	204,617	-
Due to other funds	84,095	-	-	-
Advances from other funds	-	-	-	-
Total liabilities	96,192	-	341,201	16,771
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue	-	-	-	-
Total deferred inflows of resources	-	-	-	-
FUND BALANCES
Nonspendable	-	-	-	-
Restricted total	39,162	962,918	45,330	1,867,051
Committed	-	-	-	-
Assigned	-	-	-	-
Total fund balances	39,162	962,918	45,330	1,867,051
Total liabilities, deferred inflows, and fund balances	$ 135,354	$ 962,918	$ 386,531	$ 1,883,822

Special Revenue Funds

===== PAGE 134 =====

Special Revenue Funds

	Special Revenue Funds
	Planned Drainage	Parks and Recreational Facilities	Traffic Signals	Fire Facilities Restoration
ASSETS
Cash and investments	$ 1,038,982	$ 2,094,118	$ 271,513	$ 712,167
Receivables:
Accounts	-	-	-	-
Assessments	-	-	-	-
Accrued interest	-	-	-	-
Loans	-	-	-	-
Deposits	-	-	-	-
Prepaid expenses	-	-	-	-
Due from other governments	-	-	-	-
Advances to other funds	-	-	-	-
Inventories	-	-	-	-
Restricted assets:
Cash with fiscal agent	-	-	-	-
Total assets	$ 1,038,982	$ 2,094,118	$ 271,513	$ 712,167
LIABILITIES
Accounts payable	$ -	$ -	$ 20,243	$ 40,211
Unearned revenue	-	-	-	-
Due to other funds	-	-	-	-
Advances from other funds	-	-	-	-
Total liabilities	-	-	20,243	40,211
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue	-	-	-	-
Total deferred inflows of resources	-	-	-	-
FUND BALANCES
Nonspendable	-	-	-	-
Restricted total	1,038,982	2,094,118	251,270	671,956
Committed	-	-	-	-
Assigned	-	-	-	-
Total fund balances	1,038,982	2,094,118	251,270	671,956
Total liabilities, deferred inflows, and fund balances	$ 1,038,982	$ 2,094,118	$ 271,513	$ 712,167

===== PAGE 135 =====

Special Revenue Funds

	Special Revenue Funds
	Recycling	Energy Independence Loan	Air Quality Management	Aquatic Center
ASSETS
Cash and investments	$ 3,765,683	$ 1,881,188	$ 74,601	$ 3,159,064
Receivables:
Accounts	70,352	-	-	279,070
Assessments	-	4,193	-	-
Accrued interest	-	32,632	-	-
Loans	-	789,624	-	-
Deposits	-	-	-	-
Prepaid expenses	166	-	-	7,100
Due from other governments	-	-	-	-
Advances to other funds	-	-	-	-
Inventories	-	-	-	11,183
Restricted assets:
Cash with fiscal agent	-	-	-	-
Total assets	$ 3,836,201	$ 2,707,637	$ 74,601	$ 3,456,417
LIABILITIES
Accounts payable	$ 54,299	$ -	$ 25,791	$ 613,506
Unearned revenue	14,250	-	-	2,250
Due to other funds	-	-	-	-
Advances from other funds	-	709,000	-	-
Total liabilities	68,549	709,000	25,791	615,756
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue	-	32,632	-	-
Total deferred inflows of resources	-	32,632	-	-
FUND BALANCES
Nonspendable	166	-	-	7,100
Restricted total	3,767,486	-	48,810	2,833,561
Committed	-	1,966,005	-	-
Assigned	-	-	-	-
Total fund balances	3,767,652	1,966,005	48,810	2,840,661
Total liabilities, deferred inflows, and fund balances	$ 3,836,201	$ 2,707,637	$ 74,601	$ 3,456,417

===== PAGE 136 =====

	Special Revenue Funds
	Cannabis Compliance	El Paseo Assessment District	Various Landscape and Lighting District	Affordable Housing
ASSETS
Cash and investments	$ 1,948,893	$ 197,812	$ 2,992,285	$ 1,463,191
Receivables:
Accounts	70,273	9,521	-	1,577
Assessments	-	-	-	-
Accrued interest	-	-	-	-
Loans	-	-	-	-
Deposits	-	-	-	-
Prepaid expenses	-	-	-	-
Due from other governments	-	-	36,150	-
Advances to other funds	-	-	-	-
Inventories	-	-	-	-
Restricted assets:
Cash with fiscal agent	-	-	-	-
Total assets	$ 2,019,166	$ 207,333	$ 3,028,435	$ 1,464,768
LIABILITIES
Accounts payable	$ -	$ 12,609	$ 105,126	$ (259)
Unearned revenue	-	-	-	-
Due to other funds	-	-	-	-
Advances from other funds	-	-	-	-
Total liabilities	-	12,609	105,126	(259)
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue	-	-	-	-
Total deferred inflows of resources	-	-	-	-
FUND BALANCES
Nonspendable	-	-	-	-
Restricted total	2,019,166	194,724	2,923,309	1,465,027
Committed	-	-	-	-
Assigned	-	-	-	-
Total fund balances	2,019,166	194,724	2,923,309	1,465,027
Total liabilities, deferred inflows, and fund balances	$ 2,019,166	$ 207,333	$ 3,028,435	$ 1,464,768

===== PAGE 137 =====

	Special Revenue Funds			Capital Projects Funds
ASSETS	Permanent Local Housing Allocation Grant	Opioid Settlement	Library Services	Capital Projects Reserve
Cash and investments	$ 127,739	$ 368,380	$ 528,558	$ 16,890,798
Receivables:
Accounts	-	-	4,297	-
Assessments	-	-	-	-
Accrued interest	-	-	-	-
Loans	-	-	-	-
Deposits	-	-	-	-
Prepaid expenses	-	-	6,771	-
Due from other governments	-	-	940	-
Advances to other funds	-	-	-	-
Inventories	-	-	-	-
Restricted assets:
Cash with fiscal agent	-	-	-	-
Total assets	$ 127,739	$ 368,380	$ 540,566	$ 16,890,798
LIABILITIES
Accounts payable	$ 3,750	$ 39,427	$ 121,104	$ 408,711
Unearned revenue	-	298,786	1,582	63,041
Due to other funds	-	-	-	-
Advances from other funds	-	-	-	-
Total liabilities	3,750	338,213	122,686	471,752
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue	-	-	-	-
Total deferred inflows of resources	-	-	-	-
FUND BALANCES
Nonspendable	-	-	6,771	-
Restricted total	123,989	30,167	411,109	-
Committed	-	-	-	-
Assigned	-	-	-	16,419,046
Total fund balances	123,989	30,167	417,880	16,419,046
Total liabilities, deferred inflows, and fund balances	$ 127,739	$ 368,380	$ 540,566	$ 16,890,798

===== PAGE 138 =====

Capital Projects Funds

	Capital Projects Funds
	Drainage Facilities	Economic Development	Parks and Recreational Facilities	Art in Public Places
ASSETS
Cash and investments	$ 4,738,925	$ 1,037,652	$ 11,181	$ 1,736,956
Receivables:
Accounts	-	-	-	-	-
Assessments	-	-	-	-	-
Accrued interest	-	-	-	-	-
Loans	-	-	-	-	-
Deposits	-	20,000	-	-	-
Prepaid expenses	-	25,392	-	1,000
Due from other governments	-	11,313	-	-	-
Advances to other funds	-	-	-	-	-
Inventories	-	-	-	-	-
Restricted assets:
Cash with fiscal agent	-	-	-	-	-
Total assets	$ 4,738,925	$ 1,094,357	$ 11,181	$ 1,737,956
LIABILITIES
Accounts payable	$ 26,025	$ 53,932	$ -	$ 5,190
Unearned revenue	-	-	-	-	-
Due to other funds	-	-	-	-	-
Advances from other funds	-	-	-	-	-
Total liabilities	26,025	53,932	-	5,190
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue	-	-	-	-	-
Total deferred inflows of resources	-	-	-	-	-
FUND BALANCES
Nonspendable	-	45,392	-	1,000
Restricted total	-	-	-	1,731,766
Committed	-	-	-	-	-
Assigned	4,712,900	995,033	11,181	-	-
Total fund balances	4,712,900	1,040,425	11,181	1,732,766
Total liabilities, deferred inflows, and fund balances	$ 4,738,925	$ 1,094,357	$ 11,181	$ 1,737,956

===== PAGE 139 =====

Capital Projects Funds

	Signalization	Capital Golf	Buildings	Library
ASSETS
Cash and investments	$ 123,980	$ 3,548,078	$ 4,648,639	$ 3,390,859
Receivables:
Accounts	-	-	-	-
Assessments	-	-	-	-
Accrued interest	-	-	-	-
Loans	-	-	-	-
Deposits	-	-	-	-
Prepaid expenses	-	-	-	14,810
Due from other governments	-	-	-	-
Advances to other funds	-	1,598,773	-	-
Inventories	-	-	-	-
Restricted assets:
Cash with fiscal agent	-	-	-	-
Total assets	$ 123,980	$ 5,146,851	$ 4,648,639	$ 3,405,669
LIABILITIES
Accounts payable	$ -	$ 405,589	$ 6,907	$ 133,922
Unearned revenue	-	-	-	-
Due to other funds	-	-	-	-
Advances from other funds	-	-	-	-
Total liabilities	-	405,589	6,907	133,922
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue	-	-	-	-
Total deferred inflows of resources	-	-	-	-
FUND BALANCES
Nonspendable	-	-	-	14,810
Restricted total	-	-	4,641,732	3,256,937
Committed	-	-	-	-
Assigned	123,980	4,741,262	-	-
Total fund balances	123,980	4,741,262	4,641,732	3,271,747
Total liabilities, deferred inflows, and fund balances	$ 123,980	$ 5,146,851	$ 4,648,639	$ 3,405,669

===== PAGE 140 =====

	Capital Projects Funds	Debt Service Funds
	Special Assessment District	City Highlands Undergrounding	Total Nonmajor Funds
ASSETS
Cash and investments	$ 209,633	$ 158,966	$ 87,177,472
Receivables:
Accounts	-	-	435,390
Assessments	-	952,714	956,907
Accrued interest	-	-	32,632
Loans	-	-	789,624
Deposits	-	-	20,000
Prepaid expenses	-	-	55,239
Due from other governments	-	4,289	1,265,101
Advances to other funds	-	-	1,598,773
Inventories	-	-	11,183
Restricted assets:
Cash with fiscal agent	57	-	57
Total assets	$ 209,690	$ 1,115,969	$ 92,342,378
LIABILITIES
Accounts payable	$ -	$ -	$ 3,689,802
Unearned revenue	-	-	584,526
Due to other funds	-	-	84,095
Advances from other funds	-	-	709,000
Total liabilities	-	-	5,067,423
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue	-	952,714	985,346
Total deferred inflows of resources	-	952,714	985,346
FUND BALANCES
Nonspendable	-	-	75,239
Restricted total	209,690	163,255	57,244,963
Committed	-	-	1,966,005
Assigned	-	-	27,003,402
Total fund balances	209,690	163,255	86,289,609
Total liabilities, deferred inflows, and fund balances	$ 209,690	$ 1,115,969	$ 92,342,378

===== PAGE 141 ===== ## UNIDALDESERT ## This page intentionally left blank ===== PAGE 142 =====

	Special Revenue Funds
	Traffic Safety	Gas Tax	Measure A	Housing Mitigation Fee
REVENUES
Taxes	$ -	$ -	$ 3,337,580	$ 26,079
Special assessments collected	-	-	-	-
Licenses and permits	-	-	-	-
Intergovernmental revenues	-	2,816,735	-	-
Fees and rentals	-	-	-	-
Charges for services	-	-	-	-
Investment earnings	288	245,971	1,124,018	173,153
Fines and forfeitures	1,394	-	-	-
Miscellaneous	-	-	-	-
Total revenues	1,682	3,062,706	4,461,598	199,232
EXPENDITURES
Current:
General government	-	-	-	-
Public safety	-	-	-	-
Parks, recreation and culture	-	-	-	-
Public works	-	911,127	3,697,192	-
Housing	-	-	-	65,000
Library	-	-	-	-
Capital outlay	-	288,596	7,047,609	-
Debt service:	-	-	-	-
Principal	-	-	-	-
Interest	-	-	-	-
Total expenditures	-	1,199,723	10,744,801	65,000
Excess (deficiency) of revenues over (under) expenditures	1,682	1,862,983	(6,283,203)	134,232
OTHER FINANCING SOURCES (USES)
Transfers in	-	-	-	-
Transfers out	(2,700)	-	-	-
Lease and subscription arrangements	-	-	-	-
Total other financing sources (uses)	(2,700)	-	-	-
Net change in fund balances	(1,018)	1,862,983	(6,283,203)	134,232
Fund balances (deficit)-beginning	4,976	4,239,354	23,386,002	3,110,122
Fund balances (deficit)-ending	$ 3,958	$ 6,102,337	$ 17,102,799	$ 3,244,354

===== PAGE 143 =====

	Special Revenue Funds
	Community Development Block Grant	Child Care Program	Public Safety Police Grants	New Construction Tax
REVENUES
Taxes	$ -	$ 47,660	$ -	$ 164,382
Special assessments collected	-	-	-	-
Licenses and permits	-	-	-	-
Intergovernmental revenues	477,867	-	165,899	-
Fees and rentals	-	-	-	-
Charges for services	-	-	-	-
Investment earnings	-	48,336	15,571	98,969
Fines and forfeitures	-	-	-	-
Miscellaneous	-	-	-	-
Total revenues	477,867	95,996	181,470	263,351
EXPENDITURES
Current:
General government	422,077	-	-	-
Public safety	-	-	165,899	-
Parks, recreation and culture	-	-	-	-
Public works	-	-	-	-
Housing	-	-	-	-
Library	-	-	-	-
Capital outlay	55,790	-	-	329,927
Debt service:	-	-	-	-
Principal	-	-	-	-
Interest	-	-	-	-
Total expenditures	477,867	-	165,899	329,927
Excess (deficiency) of revenues over (under) expenditures	-	95,996	15,571	(66,576)
OTHER FINANCING SOURCES (USES)
Transfers in	-	-	-	-
Transfers out	-	-	-	-
Lease and subscription arrangements	-	-	-	-
Total other financing sources (uses)	-	-	-	-
Net change in fund balances	-	95,996	15,571	(66,576)
Fund balances (deficit)-beginning	39,162	866,922	29,759	1,933,627
Fund balances (deficit)-ending	$ 39,162	$ 962,918	$ 45,330	$ 1,867,051

===== PAGE 144 =====

	Special Revenue Funds
	Planned Drainage	Parks and Recreational Facilities	Traffic Signals	Fire Facilities Restoration
REVENUES
Taxes	$ 146,635	$ 327,467	$ 18,700	$ 53,474
Special assessments collected	-	-	-	-
Licenses and permits	-	-	-	-
Intergovernmental revenues	-	-	-	-
Fees and rentals	-	-	-	-
Charges for services	-	-	-	-
Investment earnings	52,000	112,020	31,221	59,011
Fines and forfeitures	-	-	-	-
Miscellaneous	-	-	-	-
Total revenues	198,635	439,487	49,921	112,485
EXPENDITURES
Current:
General government	-	-	-	-
Public safety	11,718	-	-	-
Parks, recreation and culture	-	-	-	-
Public works	-	-	-	-
Housing	-	-	-	-
Library	-	-	-	-
Capital outlay	-	134,960	404,866	626,834
Debt service:	-	-	-	-
Principal	-	-	-	-
Interest	-	-	-	-
Total expenditures	11,718	134,960	404,866	626,834
Excess (deficiency) of revenues over (under) expenditures	186,917	304,527	(354,945)	(514,349)
OTHER FINANCING SOURCES (USES)
Transfers in	-	-	-	-
Transfers out	-	-	-	-
Proceeds from subscriptions and leases	-	-	-	-
Total other financing sources (uses)	-	-	-	-
Net change in fund balances	186,917	304,527	(354,945)	(514,349)
Fund balances (deficit)-beginning, as restated	852,065	1,789,591	606,215	1,186,305
Fund balances (deficit)-ending	$ 1,038,982	$ 2,094,118	$ 251,270	$ 671,956

===== PAGE 145 =====

Special Revenue Funds

	Special Revenue Funds
	Recycling	Energy Independence Loan	Air Quality Management	Aquatic Center
REVENUES
Taxes	$ -	$ -	$ -	$ -
Special assessments collected	-	82,184	-	-
Licenses and permits	-	-	-	-
Intergovernmental revenues	95,893	-	67,147	-
Fees and rentals	-	-	-	168,216
Charges for services	496,923	-	-	849,317
Investment earnings	193,622	91,881	2,581	179,887
Fines and forfeitures	-	-	-	-
Miscellaneous	-	-	-	-
Total revenues	786,438	174,065	69,728	1,197,420
EXPENDITURES
Current:
General government	488,128	4,117	52,650	-
Public safety	-	-	-	-
Parks, recreation and culture	-	-	-	2,911,931
Public works	-	-	-	-
Housing	-	-	-	-
Library	-	-	-	-
Capital outlay	-	-	-	1,181,558
Debt service:	-	-	-	-
Principal	-	19,000	-	-
Interest	-	54,325	-	-
Total expenditures	488,128	77,442	52,650	4,093,489
Excess (deficiency) of revenues over (under) expenditures	298,310	96,623	17,078	(2,896,069)
OTHER FINANCING SOURCES (USES)
Transfers in	-	-	-	2,937,500
Transfers out	-	-	-	-
Proceeds from subscriptions and leases	-	-	-	-
Total other financing sources (uses)	-	-	-	2,937,500
Net change in fund balances	298,310	96,623	17,078	41,431
Fund balances (deficit)-ending	$ 3,767,652	$ 1,966,005	$ 48,810	$ 2,840,661

===== PAGE 146 =====

	Special Revenue Funds
	Cannabis Compliance	El Paseo Assessment District	Various Landscape and Lighting District	Affordable Housing
REVENUES
Taxes	$ 926,842	$ -	$ -	$ -
Special assessments collected	-	393,678	1,060,060	-
Licenses and permits	-	-	-	-
Intergovernmental revenues	-	-	-	-
Fees and rentals	-	-	-	-
Charges for services	-	-	-	-
Investment earnings	97,822	10,404	141,165	538
Fines and forfeitures	-	-	-	-
Miscellaneous	-	-	-	-
Total revenues	1,024,664	404,082	1,201,225	538
EXPENDITURES
Current:
General government	-	312,002	-	2,360
Public safety	-	-	-	-
Parks, recreation and culture	-	-	-	-
Public works	-	-	976,621	-
Housing	-	-	-	373,475
Library	-	-	-	-
Capital outlay	-	-	-	228
Debt service:	-	-	-	-
Principal	-	-	-	-
Interest	-	-	-	-
Total expenditures	-	312,002	976,621	376,063
Excess (deficiency) of revenues over (under) expenditures	1,024,664	92,080	224,604	(375,525)
OTHER FINANCING SOURCES (USES)
Transfers in	-	-	194,251	430,542
Transfers out	(500,000)	-	-	-
Proceeds from subscriptions and leases	-	-	-	-
Total other financing sources (uses)	(500,000)	-	194,251	430,542
Net change in fund balances	524,664	92,080	418,855	55,017
Fund balances (deficit)-beginning	1,494,502	102,644	2,504,454	1,410,010
Fund balances (deficit)-ending	$ 2,019,166	$ 194,724	$ 2,923,309	$ 1,465,027

===== PAGE 147 =====

	Special Revenue Funds			Capital Projects Funds
	Permanent Local Housing Allocation Grant	Opioid Settlement	Library Services	Capital Projects Reserve
REVENUES
Taxes	$ -	$ -	$ -	$ -
Special assessments collected	-	-	-	-
Licenses and permits	-	-	-	-
Intergovernmental revenues	439,873	242,845	-	-
Fees and rentals	-	-	-	-
Charges for services	-	-	5,926	-
Investment earnings	-	22,628	57,502	750,664
Fines and forfeitures	-	-	-	-
Miscellaneous	-	-	51,318	223,049
Total revenues	439,873	265,473	114,746	973,713
EXPENDITURES
Current:
General government	-	-	-	1,293,190
Public safety	-	-	-	-
Parks, recreation and culture	-	-	-	168,280
Public works	-	-	-	24,114
Housing	45,000	242,845	-	-
Library	-	-	2,934,418	-
Capital outlay	-	-	-	2,694,601
Debt service:	-	-	-	-
Principal	-	-	112,313	-
Interest	-	-	-	-
Total expenditures	45,000	242,845	3,046,731	4,180,185
Excess (deficiency) of revenues over (under) expenditures	394,873	22,628	(2,931,985)	(3,206,472)
OTHER FINANCING SOURCES (USES)
Transfers in	-	-	2,185,290	11,017,674
Transfers out	(100,000)	-	-	(1,512,440)
Proceeds from subscriptions and leases	-	-	529,792	-
Total other financing sources (uses)	(100,000)	-	2,715,082	9,505,234
Net change in fund balances	294,873	22,628	(216,903)	6,298,762
Fund balances (deficit)-beginning	(170,884)	7,539	634,783	10,120,284
Fund balances (deficit)-ending	$ 123,989	$ 30,167	$ 417,880	$ 16,419,046

===== PAGE 148 =====

	Capital Projects Funds
	Drainage Facilities	Economic Development	Parks and Recreational Facilities	Art in Public Places
REVENUES
Taxes	$ -	$ -	$ -	$ -
Special assessments collected	-	-	-	-
Licenses and permits	-	-	-	460,016
Intergovernmental revenues	-	400,715	-	-
Fees and rentals	-	161,050	-	-
Charges for services	-	-	-	-
Investment earnings	252,797	57,919	576	85,127
Fines and forfeitures	-	-	-	-
Miscellaneous	-	750	-	-
Total revenues	252,797	620,434	576	545,143
EXPENDITURES
Current:
General government	-	472,681	-	-
Public safety	-	-	-	-
Parks, recreation and culture	-	-	-	153,734
Public works	285,621	4,743	-	-
Housing	-	120,814	-	-
Library	-	-	-	-
Capital outlay	-	-	-	168,891
Debt service:	-	-	-	-
Principal	-	193,733	-	-
Interest	-	-	-	-
Total expenditures	285,621	791,971	-	322,625
Excess (deficiency) of revenues over (under) expenditures	(32,824)	(171,537)	576	222,518
OTHER FINANCING SOURCES (USES)
Transfers in	-	-	-	-
Transfers out	-	-	-	-
Proceeds from subscriptions and leases	-	-	-	-
Total other financing sources (uses)	-	-	-	-
Net change in fund balances	(32,824)	(171,537)	576	222,518
Fund balances (deficit)-beginning	4,745,724	1,211,962	10,605	1,510,248
Fund balances (deficit)-ending	$ 4,712,900	$ 1,040,425	$ 11,181	$ 1,732,766

===== PAGE 149 =====

	Capital Projects Funds
	Signalization	Capital Golf	Buildings	Library
REVENUES
Taxes	$ -	$ -	$ -	$ -
Special assessments collected	-	-	-	-
Licenses and permits	-	-	-	-
Intergovernmental revenues	-	-	-	-
Fees and rentals	-	-	-	-
Charges for services	-	2,769,516	-	-
Investment earnings	6,402	283,949	119,600	192,265
Fines and forfeitures	-	-	-	-
Miscellaneous	-	-	-	-
Total revenues	6,402	3,053,465	119,600	192,265
EXPENDITURES
Current:
General government	-	-	-	-
Public safety	-	-	-	-
Parks, recreation and culture	-	5,895,143	-	-
Public works	-	-	-	-
Housing	-	-	-	-
Library	-	-	-	-
Capital outlay	-	-	856,887	673,384
Debt service:	-	-	-	-
Principal	-	-	-	-
Interest	-	-	-	-
Total expenditures	-	5,895,143	856,887	673,384
Excess (deficiency) of revenues over (under) expenditures	6,402	(2,841,678)	(737,287)	(481,119)
OTHER FINANCING SOURCES (USES)
Transfers in	-	-	5,653,640	-
Transfers out	-	-	-	-
Proceeds from subscriptions and leases	-	-	-	-
Total other financing sources (uses)	-	-	5,653,640	-
Net change in fund balances	6,402	(2,841,678)	4,916,353	(481,119)
Fund balances (deficit)-beginning	117,578	7,582,940	(274,621)	3,752,866
Fund balances (deficit)-ending	$ 123,980	$ 4,741,262	$ 4,641,732	$ 3,271,747

===== PAGE 150 =====

	Capital Projects Funds	Debt Service Funds	Total Nonmajor Funds
	Special Assessment District	City Highlands Undergrounding
REVENUES
Taxes	$ -	$ -	$ 5,048,819
Special assessments collected	-	133,668	1,669,590
Licenses and permits	-	-	460,016
Intergovernmental revenues	-	-	4,706,974
Fees and rentals	-	-	329,266
Charges for services	-	-	4,121,682
Investment earnings	10,844	5,915	4,524,646
Fines and forfeitures	-	-	1,394
Miscellaneous	-	-	275,117
Total revenues	10,844	139,583	21,137,504
EXPENDITURES
Current:
General government	-	16,265	3,063,470
Public safety	-	-	177,617
Parks, recreation and culture	-	-	9,129,088
Public works	-	-	5,899,418
Housing	-	-	847,134
Library	-	-	2,934,418
Capital outlay	-	-	14,464,131
Debt service:	-	-
Principal	-	54,000	379,046
Interest	-	48,493	102,818
Total expenditures	-	118,758	36,997,140
Excess (deficiency) of revenues over (under) expenditures	10,844	20,825	(15,859,636)
OTHER FINANCING SOURCES (USES)
Transfers in	-	-	22,418,897
Transfers out	-	-	(2,115,140)
Proceeds from subscriptions and leases	-	-	529,792
Total other financing sources (uses)	-	-	20,833,549
Net change in fund balances	10,844	20,825	4,973,913
Fund balances (deficit)-beginning	198,846	142,430	81,315,696
Fund balances (deficit)-ending	$ 209,690	$ 163,255	$ 86,289,609

===== PAGE 151 =====

	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Investment earnings	$ -	$ -	$ 288	$ 288
Fines and forfeitures	3,000	3,000	1,394	(1,606)
Total revenues	3,000	3,000	1,682	(1,318)
OTHER FINANCING SOURCES (USES)
Transfers out	(2,700)	(2,700)	(2,700)	-
Total other financing sources (uses)	(2,700)	(2,700)	(2,700)	-
Net change in fund balance	$ 300	$ 300	(1,018)	$ (1,318)
Fund balance-beginning			4,976
Fund balances-ending			$ 3,958

===== PAGE 152 =====

	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Intergovernmental revenues	$ 2,700,834	$ 2,700,834	$ 2,816,735	$ 115,901
Investment earnings	193,400	193,400	245,971	52,571
Total revenues	2,894,234	2,894,234	3,062,706	168,472
EXPENDITURES
Current:
Public works	3,660,000	2,515,050	911,127	1,603,923
Capital outlay	-	4,292,342	288,596	4,003,746
Total expenditures	3,660,000	6,807,392	1,199,723	5,607,669
Net change in fund balance	$ (765,766)	$ (3,913,158)	1,862,983	$ 5,776,141
Fund balance-beginning			4,239,354
Fund balances-ending			$ 6,102,337

===== PAGE 153 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Taxes	$ 3,328,000	$ 3,328,000	$ 3,337,580	$ 9,580
Investment earnings	875,600	875,600	1,124,018	248,418
Total revenues	4,203,600	4,203,600	4,461,598	257,998
EXPENDITURES
Current:
Public works	3,300,000	3,779,883	3,697,192	82,691
Capital outlay	11,210,000	23,657,253	7,047,609	16,609,644
Total expenditures	14,510,000	27,437,136	10,744,801	16,692,335
Net change in fund balance	$ (10,306,400)	$ (23,233,536)	(6,283,203)	$ 16,950,333
Fund balance-beginning			23,386,002
Fund balances-ending			$ 17,102,799

===== PAGE 154 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Taxes	$ 149,118	$ 49,118	$ 26,079	$ (23,039)
Investment earnings	132,300	132,300	173,153	40,853
Total revenues	281,418	181,418	199,232	17,814
EXPENDITURES
Current:
Housing	409,135	423,335	65,000	358,335
Total expenditures	409,135	423,335	65,000	358,335
Net change in fund balance	$ (127,717)	$ (241,917)	134,232	$ 376,149
Fund balance-beginning			3,110,122
Fund balances-ending			$ 3,244,354

===== PAGE 155 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Intergovernmental revenues	$ 1,351,359	$ 1,351,359	$ 477,867	$ (873,492)
Total revenues	1,351,359	1,351,359	477,867	(873,492)
EXPENDITURES
Current:
General government	728,686	1,047,159	422,077	625,082
Capital outlay	-	204,762	55,790	148,972
Total expenditures	728,686	1,251,921	477,867	774,054
Net change in fund balance	$ 622,673	$ 99,438	-	$ (99,438)
Fund balance-beginning			39,162
Fund balances-ending			$ 39,162

===== PAGE 156 =====

	Budget Amounts
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Taxes	$ 207,779	$ 107,779	$ 47,660	$ (60,119)
Investment earnings	28,500	28,500	48,336	19,836
Total revenues	236,279	136,279	95,996	(40,283)
Net change in fund balance	$ 236,279	$ 136,279	95,996	$ (40,283)
Fund balance-beginning			866,922
Fund balances-ending			$ 962,918

===== PAGE 157 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Intergovernmental revenues	$ 165,000	$ 165,000	$ 165,899	$ 899
Investment earnings	12,000	12,000	15,571	3,571
Total revenues	177,000	177,000	181,470	4,470
EXPENDITURES
Current:
Public safety	35,000	168,000	165,899	2,101
Total expenditures	35,000	168,000	165,899	2,101
Net change in fund balance	$ 142,000	$ 9,000	15,571	$ 6,571
Fund balance-beginning			29,759
Fund balances-ending			$ 45,330

===== PAGE 158 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Taxes	$ 650,302	$ 150,302	$ 164,382	$ 14,080
Investment earnings	63,700	63,700	98,969	35,269
Total revenues	714,002	214,002	263,351	49,349
EXPENDITURES
Capital outlay	-	494,500	329,927	164,573
Total expenditures	-	494,500	329,927	164,573
Net change in fund balance	$ 714,002	$ (280,498)	(66,576)	$ 213,922
Fund balance-beginning			1,933,627
Fund balances-ending			$ 1,867,051

===== PAGE 159 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Taxes	$ 70,000	$ 220,000	$ 146,635	$ (73,365)
Investment earnings	33,500	33,500	52,000	18,500
Total revenues	103,500	253,500	198,635	(54,865)
EXPENDITURES
Current:
Public safety	-	286,718	11,718	275,000
Total expenditures	-	286,718	11,718	275,000
Net change in fund balance	$ 103,500	$ (33,218)	186,917	$ 220,135
Fund balance-beginning			852,065
Fund balances-ending			$ 1,038,982

===== PAGE 160 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Taxes	$ 175,000	$ 250,108	$ 327,467	$ 77,359
Investment earnings	70,800	70,800	112,020	41,220
Total revenues	245,800	320,908	439,487	118,579
EXPENDITURES
Capital outlay	-	639,729	134,960	504,769
Total expenditures	-	639,729	134,960	504,769
Net change in fund balance	$ 245,800	$ (318,821)	304,527	$ 623,348
Fund balance-beginning			1,789,591
Fund balances-ending			$ 2,094,118

===== PAGE 161 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Taxes	$ 20,000	$ 20,000	$ 18,700	$ (1,300)
Investment earnings	19,300	19,300	31,221	11,921
Total revenues	39,300	39,300	49,921	10,621
EXPENDITURES
Capital outlay	-	460,075	404,866	55,209
Total expenditures	-	460,075	404,866	55,209
Net change in fund balance	$ 39,300	$ (420,775)	(354,945)	$ 65,830
Fund balance-beginning			606,215
Fund balances-ending			$ 251,270

===== PAGE 162 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Taxes	$ 116,100	$ 116,100	$ 53,474	$ (62,626)
Investment earnings	59,700	59,700	59,011	(689)
Total revenues	175,800	175,800	112,485	(63,315)
EXPENDITURES
Capital outlay	-	1,111,915	626,834	485,081
Total expenditures	-	1,111,915	626,834	485,081
Net change in fund balance	$ 175,800	$ (936,115)	(514,349)	$ 421,766
Fund balance-beginning			1,186,305
Fund balances-ending			$ 671,956

===== PAGE 163 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Intergovernmental revenues	$ 260,000	$ 260,000	$ 95,893	$ (164,107)
Charges for services	430,000	430,000	496,923	66,923
Investment earnings	121,900	121,900	193,622	71,722
Total revenues	811,900	811,900	786,438	(25,462)
EXPENDITURES
Current:
General government	753,000	832,011	488,128	343,883
Total expenditures	753,000	832,011	488,128	343,883
Net change in fund balance	$ 58,900	$ (20,111)	298,310	$ 318,421
Fund balance-beginning			3,469,342
Fund balances-ending			$ 3,767,652

===== PAGE 164 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Special assessments collected	$ 115,000	$ 115,000	$ 82,184	$ (32,816)
Investment earnings	61,500	61,500	91,881	30,381
Total revenues	176,500	176,500	174,065	(2,435)
EXPENDITURES
Current:
General government	15,000	15,000	4,117	10,883
Debt service:
Principal	121,000	121,000	19,000	102,000
Interest	56,145	56,145	54,325	1,820
Total expenditures	192,145	192,145	77,442	114,703
Net change in fund balance	$ (15,645)	$ (15,645)	96,623	$ 112,268
Fund balance-beginning			1,869,382
Fund balances-ending			$ 1,966,005

===== PAGE 165 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Intergovernmental revenues	$ 65,000	$ 65,000	$ 67,147	$ 2,147
Investment earnings	1,180	1,180	2,581	1,401
Total revenues	66,180	66,180	69,728	3,548
EXPENDITURES
Current:
General government	74,000	74,000	52,650	21,350
Capital outlay	15,830	15,830	-	15,830
Total expenditures	89,830	89,830	52,650	37,180
Net change in fund balance	$ (23,650)	$ (23,650)	17,078	$ 40,728
Fund balance-beginning			31,732
Fund balances-ending			$ 48,810

===== PAGE 166 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Fees and rentals	$ -	$ 74,080	$ 168,216	$ 94,136
Charges for services	648,000	840,287	849,317	9,030
Investment earnings	39,500	39,500	179,887	140,387
Total revenues	687,500	953,867	1,197,420	243,553
EXPENDITURES
Current:
Parks, recreation and culture	3,251,500	3,181,989	2,911,931	270,058
Capital outlay	350,000	1,529,632	1,181,558	348,074
Total expenditures	3,601,500	4,711,621	4,093,489	618,132
Excess (deficiency) of revenues over (under) expenditures	(2,914,000)	(3,757,754)	(2,896,069)	861,685
OTHER FINANCING SOURCES (USES)
Transfers in	2,937,500	2,937,500	2,937,500	-
Total other financing sources (uses)	2,937,500	2,937,500	2,937,500	-
Net change in fund balance	$ 23,500	$ (820,254)	41,431	$ 861,685
Fund balance-beginning			2,799,230
Fund balances-ending			$ 2,840,661

===== PAGE 167 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Taxes	$ 957,853	$ 892,401	$ 926,842	$ 34,441
Investment earnings	-	-	97,822	97,822
Total revenues	957,853	892,401	1,024,664	132,263
OTHER FINANCING SOURCES (USES)
Transfers out	(500,000)	(500,000)	(500,000)	-
Total other financing sources (uses)	(500,000)	(500,000)	(500,000)	-
Net change in fund balance	$ 457,853	$ 392,401	524,664	$ 132,263
Fund balance-beginning			1,494,502
Fund balances-ending			$ 2,019,166

===== PAGE 168 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Special assessments collected	$ 250,000	$ 300,000	$ 393,678	$ 93,678
Investment earnings	-	-	10,404	10,404
Total revenues	250,000	300,000	404,082	104,082
EXPENDITURES
Current:
General government	275,000	325,000	312,002	12,998
Total expenditures	275,000	325,000	312,002	12,998
Net change in fund balance	$ (25,000)	$ (25,000)	92,080	$ 117,080
Fund balance-beginning			102,644
Fund balances-ending			$ 194,724

===== PAGE 169 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Special assessments collected	$ 1,035,784	$ 1,035,784	$ 1,060,060	$ 24,276
Investment earnings	130,900	60,900	141,165	80,265
Total revenues	1,166,684	1,096,684	1,201,225	104,541
EXPENDITURES
Current:
Public works	1,211,031	1,394,776	976,621	418,155
Total expenditures	1,211,031	1,394,776	976,621	418,155
Excess (deficiency) of revenues over (under) expenditures	(44,347)	(298,092)	224,604	522,696
OTHER FINANCING SOURCES (USES)
Transfers in	158,000	195,500	194,251	(1,249)
Total other financing sources (uses)	158,000	195,500	194,251	(1,249)
Net change in fund balance	$ 113,653	$ (102,592)	418,855	$ 521,447
Fund balance-beginning			2,504,454
Fund balances-ending			$ 2,923,309

===== PAGE 170 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Investment earnings	$ -	$ -	$ 538	$ 538
Total revenues	-	-	538	538
EXPENDITURES
Current:
General government	2,400	2,400	2,360	40
Housing	494,102	489,365	373,475	115,890
Capital outlay	600	228	228	-
Total expenditures	497,102	491,993	376,063	115,930
Excess (deficiency) of revenues over (under) expenditures	(497,102)	(491,993)	(375,525)	116,468
OTHER FINANCING SOURCES (USES)
Transfers in	497,102	547,102	430,542	(116,560)
Total other financing sources (uses)	497,102	547,102	430,542	(116,560)
Net change in fund balance	$ -	$ 55,109	55,017	$ (92)
Fund balance-beginning			1,410,010
Fund balances-ending			$ 1,465,027

===== PAGE 171 =====

	Budget Amounts			Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Intergovernmental revenues	$ 960,899	$ 439,883	$ 439,873	$ (10)
Total revenues	960,899	439,883	439,873	(10)
EXPENDITURES
Current:
Housing	195,000	45,000	45,000	-
Total expenditures	195,000	45,000	45,000	-
Excess (deficiency) of revenues
over (under) expenditures	765,899	394,883	394,873	(10)
OTHER FINANCING SOURCES (USES)
Transfers out	(265,000)	(100,000)	(100,000)	-
Total other financing sources (uses)	(265,000)	(100,000)	(100,000)	-
Net change in fund balance	$ 500,899	$ 294,883	294,873	$ (10)
Fund balance-beginning			(170,884)
Fund balances-ending			$ 123,989

===== PAGE 172 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Intergovernmental revenues	$ 51,098	$ 403,826	$ 242,845	$ (160,981)
Investment earnings	-	-	22,628	22,628
Total revenues	51,098	403,826	265,473	(138,353)
EXPENDITURES
Current:
Housing	101,000	251,000	242,845	8,155
Total expenditures	101,000	251,000	242,845	8,155
Net change in fund balance	$ (49,902)	$ 152,826	22,628	$ (130,198)
Fund balance-beginning			7,539
Fund balances-ending			$ 30,167

===== PAGE 173 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Charges for services	$ -	$ 688	$ 5,926	$ 5,238
Investment earnings	-	-	57,502	57,502
Miscellaneous	-	50,000	51,318	1,318
Total revenues	-	50,688	114,746	64,058
EXPENDITURES
Current:
Library	2,601,077	2,665,327	2,934,418	(269,091)
Debt service:
Principal	-	-	112,313	(112,313)
Total expenditures	2,601,077	2,665,327	3,046,731	(381,404)
Excess (deficiency) of revenues over (under) expenditures	(2,601,077)	(2,614,639)	(2,931,985)	(317,346)
OTHER FINANCING SOURCES (USES)
Transfers in	2,400,000	2,185,290	2,185,290	-
Lease and subscription arrangements	-	-	529,792	529,792
Total other financing sources (uses)	2,400,000	2,185,290	2,715,082	529,792
Net change in fund balance	$ (201,077)	$ (429,349)	(216,903)	$ 212,446
Fund balance-beginning			634,783
Fund balances-ending			$ 417,880

===== PAGE 174 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Investment earnings	$ 335,000	$ 335,000	$ 750,664	$ 415,664
Miscellaneous	-	-	223,049	223,049
Total revenues	335,000	335,000	973,713	638,713
EXPENDITURES
Current:
General government	1,000,000	3,383,314	1,293,190	2,090,124
Parks, recreation and culture	125,000	1,180,000	168,280	1,011,720
Public works	150,000	25,000	24,114	886
Capital outlay	7,253,612	10,857,126	2,694,601	8,162,525
Total expenditures	8,528,612	15,445,440	4,180,185	11,265,255
Excess (deficiency) of revenues over (under) expenditures	(8,193,612)	(15,110,440)	(3,206,472)	11,903,968
OTHER FINANCING SOURCES (USES)
Transfers in	-	11,017,674	11,017,674	-
Transfers out	-	(1,512,440)	(1,512,440)	-
Total other financing sources (uses)	-	9,505,234	9,505,234	-
Net change in fund balance	$ (8,193,612)	$ (5,605,206)	6,298,762	$ 11,903,968
Fund balance-beginning			10,120,284
Fund balances-ending			$ 16,419,046

===== PAGE 175 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Investment earnings	$ 73,700	$ 73,700	$ 252,797	$ 179,097
Total revenues	73,700	73,700	252,797	179,097
EXPENDITURES
Current:
Public works	275,000	3,717,240	285,621	3,431,619
Total expenditures	275,000	3,717,240	285,621	3,431,619
Net change in fund balance	$ (201,300)	$ (3,643,540)	(32,824)	$ 3,610,716
Fund balance-beginning			4,745,724
Fund balances-ending			$ 4,712,900

===== PAGE 176 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Intergovernmental revenues	$ 15,000	$ 147,738	$ 400,715	$ 252,977
Fees and rentals	64,543	64,543	161,050	96,507
Investment earnings	61,700	61,700	57,919	(3,781)
Miscellaneous	-	750	750	-
Total revenues	141,243	274,731	620,434	345,703
EXPENDITURES
Current:
General government	506,992	1,171,993	472,681	699,312
Public works	3,600	5,000	4,743	257
Housing	234,000	217,599	120,814	96,785
Total expenditures	744,592	1,394,592	791,971	602,621
Net change in fund balance	$ (603,349)	$ (1,119,861)	(171,537)	$ 948,324
Fund balance-beginning			1,211,962
Fund balances-ending			$ 1,040,425

===== PAGE 177 =====

	Budget Amounts
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Investment earnings	$ 400	$ 400	$ 576	$ 176
Total revenues	400	400	576	176
Net change in fund balance	$ 400	$ 400	576	$ 176
Fund balance-beginning			10,605
Fund balances-ending			$ 11,181

===== PAGE 178 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Licenses and permits	$ 328,275	$ 328,275	$ 460,016	$ 131,741
Investment earnings	53,000	53,000	85,127	32,127
Miscellaneous	164,790	164,790	-	(164,790)
Total revenues	546,065	546,065	545,143	(922)
EXPENDITURES
Current:
Parks, recreation and culture	254,120	254,995	153,734	101,261
Capital outlay	820,000	879,000	168,891	710,109
Total expenditures	1,074,120	1,133,995	322,625	811,370
Net change in fund balance	$ (528,055)	$ (587,930)	222,518	$ 810,448
Fund balance-beginning			1,510,248
Fund balances-ending			$ 1,732,766

===== PAGE 179 =====

	Budget Amounts
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Investment earnings	$ 4,300	$ 4,300	$ 6,402	$ 2,102
Total revenues	4,300	4,300	6,402	2,102
Net change in fund balance	$ 4,300	$ 4,300	6,402	$ 2,102
Fund balance-beginning			117,578
Fund balances-ending			$ 123,980

===== PAGE 180 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Charges for services	$ 2,587,865	$ 2,587,865	$ 2,769,516	$ 181,651
Investment earnings	421,400	421,400	283,949	(137,451)
Total revenues	3,009,265	3,009,265	3,053,465	44,200
EXPENDITURES
Current:
Parks, recreation and culture	3,075,000	8,249,888	5,895,143	2,354,745
Total expenditures	3,075,000	8,249,888	5,895,143	2,354,745
Net change in fund balance	$ (65,735)	$ (5,240,623)	(2,841,678)	$ 2,398,945
Fund balance-beginning			7,582,940
Fund balances-ending			$ 4,741,262

===== PAGE 181 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Investment earnings	$ 102,150	$ 102,150	$ 119,600	$ 17,450
Total revenues	102,150	102,150	119,600	17,450
EXPENDITURES
Current:
General government	150,000	150,000	-	150,000
Capital outlay	2,925,000	3,588,821	856,887	2,731,934
Total expenditures	3,075,000	3,738,821	856,887	2,881,934
Excess (deficiency) of revenues over (under) expenditures	(2,972,850)	(3,636,671)	(737,287)	2,899,384
OTHER FINANCING SOURCES (USES)
Transfers in	-	5,653,640	5,653,640	-
Total other financing sources (uses)	-	5,653,640	5,653,640	-
Net change in fund balance	$ (2,972,850)	$ 2,016,969	4,916,353	$ 2,899,384
Fund balance-beginning			(274,621)
Fund balances-ending			$ 4,641,732

===== PAGE 182 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES
Investment earnings	$ -	$ 180,000	$ 192,265	$ 12,265
Total revenues	-	180,000	192,265	12,265
EXPENDITURES
Capital outlay	3,200,000	3,869,816	673,384	3,196,432
Total expenditures	3,200,000	3,869,816	673,384	3,196,432
Net change in fund balance	$ (3,200,000)	$ (3,689,816)	(481,119)	$ 3,208,697
Fund balance-beginning			3,752,866
Fund balances-ending			$ 3,271,747

===== PAGE 183 =====

	Budget Amounts		Actual Amounts	Variance with Final Budget Positive (Negative)
REVENUES	Original	Final	Actual Amounts	Variance with Final Budget Positive (Negative)
Special assessments collected	$ 120,391	$ 120,391	$ 133,668	$ 13,277
Investment earnings	2,600	2,600	5,915	3,315
Total revenues	122,991	122,991	139,583	16,592
EXPENDITURES
Current:
General government	16,684	16,684	16,265	419
Debt service:
Principal	55,000	55,000	54,000	1,000
Interest	48,981	48,981	48,493	488
Total expenditures	120,665	120,665	118,758	1,907
Net change in fund balance	$ 2,326	$ 2,326	20,825	$ 18,499
Fund balance-beginning			142,430
Fund balances-ending			$ 163,255

===== PAGE 184 =====

	Equipment Replacement	Compensation Benefits	Total Internal Service Funds
ASSETS
Current assets:
Cash and investments	$ 8,477,081	$ 3,110,085	$ 11,587,166
Total current assets	8,477,081	3,110,085	11,587,166
Noncurrent:
Nondepreciable capital assets	11,821	-	11,821
Depreciable capital assets, net	2,994,711	-	2,994,711
Total noncurrent assets	3,006,532	-	3,006,532
Total assets	11,483,613	3,110,085	14,593,698
LIABILITIES
Current liabilities:
Accounts payable	261,685	-	261,685
Compensated absences	-	500,000	500,000
Total current liabilities	261,685	500,000	761,685
Noncurrent liabilities:
Compensated absences	-	2,134,786	2,134,786
Total noncurrent liabilities	-	2,134,786	2,134,786
Total liabilities	261,685	2,634,786	2,896,471
NET POSITION
Net invested in capital assets	3,006,532	-	3,006,532
Unrestricted	8,215,396	475,299	8,690,695
Total net position	$ 11,221,928	$ 475,299	$ 11,697,227

===== PAGE 185 =====

	Equipment Replacement	Compensation Benefits	Total Internal Service Funds
OPERATING REVENUES
Interest Income	$ 301,704	$ 150,587	$ 452,291
Total operating revenues	301,704	150,587	452,291
OPERATING EXPENSES
General and administrative	-	178,700	178,700
Maintenance and operations	431,339	-	431,339
Depreciation	726,526	-	726,526
Total operating expenses	1,157,865	178,700	1,336,565
Operating income (loss)	(856,161)	(28,113)	(884,274)
Income (loss) before transfers	(856,161)	(28,113)	(884,274)
Transfers in	3,291,980	658,628	3,950,608
Change in net position	2,435,819	630,515	3,066,334
Net position-beginning	8,786,109	(155,216)	8,630,893
Net position-ending	$ 11,221,928	$ 475,299	$ 11,697,227

===== PAGE 186 =====

	Equipment Replacement	Compensation Benefits	Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers	$ 301,704	$ 150,587	$ 452,291
Payments to suppliers and service providers	(192,805)	-	(192,805)
Payments to employees for salaries and benefits	-	(216,601)	(216,601)
Net cash provided by (used for) operating activities	108,899	(66,014)	42,885
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds	3,291,980	658,628	3,950,608
Net cash provided by (used for) noncapital financing activities	3,291,980	658,628	3,950,608
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets	(851,883)	-	(851,883)
Net cash provided by (used for) capital and related financing activities	(851,883)	-	(851,883)
Net increase (decrease) in cash and cash equivalents	2,548,996	592,614	3,141,610
Cash and cash equivalents-beginning	5,928,085	2,517,471	8,445,556
Cash and cash equivalents-ending	$ 8,477,081	$ 3,110,085	$ 11,587,166
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
Operating income (loss)	$ (856,161)	$ (28,113)	$ (884,274)
Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities:
Depreciation/amortization expense	726,526	-	726,526
Increase (decrease) in accounts payable	238,534	-	238,534
Increase (decrease) in compensated absences	-	(37,901)	(37,901)
Total adjustments	965,060	(37,901)	927,159
Net cash provided by (used for) operating activities	$ 108,899	$ (66,014)	$ 42,885

===== PAGE 187 =====

	Retiree Service Stipend	Special Assessment	Total Custodial Funds
ASSETS
Cash and cash equivalents	$ 3,232,448	$ 5,337,585	$ 8,570,033
Receivables:
Assessments	-	42,707,169	42,707,169
Accrued interest	-	649	649
Due from other governments	-	24,177	24,177
Cash and investments with fiscal agents	-	3,878,696	3,878,696
Total assets	3,232,448	51,948,276	55,180,724
LIABILITIES
Accounts payable	-	1,525	1,525
Deposits received	-	42,707,169	42,707,169
Due to other governments	-	9,239,582	9,239,582
Total liabilities	-	51,948,276	51,948,276
NET POSITION
Restricted for other purposes	3,232,448	-	3,232,448
Total net position	$ 3,232,448	$ -	$ 3,232,448

===== PAGE 188 =====

	Retiree Service Stipend	Special Assessment	Total Custodial Funds
ADDITIONS
Contributions from City	$ 979,824	$ -	$ 979,824
Investment income	169,570	193,263	362,833
Intergovernmental revenues	-	4,548,820	4,548,820
Total additions	1,149,394	4,742,083	5,891,477
DEDUCTIONS
Administrative expenses	-	194,425	194,425
Contractual Services	1,010,789	2,250	1,013,039
Interest	-	1,725,408	1,725,408
Principal	-	2,820,000	2,820,000
Total deductions	1,010,789	4,742,083	5,752,872
Net increase (decrease) in fiduciary net position	138,605	-	138,605
Net position-beginning	3,093,843	-	3,093,843
Net position-ending	$ 3,232,448	$ -	$ 3,232,448

===== PAGE 189 ===== STATISTICAL SECTION Financial Trends Revenue Capacity Debt Capacity Demographic and Economic Information Operating Information ===== PAGE 190 ===== ## CITY OF PALM DESERT, CALIFORNIA DESCRIPTION OF STATISTICAL SECTION CONTENTS JUNE 30, 2025 This part of the Cityt's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements and the note disclosures say about the government's overall financial health. ## Contents: ## Pages: Financial Trends: these schedules contain trend information to help the reader understand how the City's financial performance and well being have changed over time ..... 192 Revenue Capacity: these schedules contain information to help the reader assess the City's most significant local revenue source, the property tax ..... 206 Debt Capacity: these schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future ..... 214 Demographic and Economic Information: these schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place ..... 221 Operating Information: these schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs ..... 225 ===== PAGE 191 ===== ## UNIDALDESERT ## This page intentionally left blank ===== PAGE 192 ===== Financial Trends Source: CITY Finance Department 192 ===== PAGE 193 ===== # City of Palm Desert Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting)

Governmental Activities	2025	2024	2023	2022	2021
Net Investment in capital assets	426,387,331	413,793,558	416,680,537	422,400,639	421,568,819
Restricted	189,098,617	175,943,758	172,531,052	164,636,470	197,082,889
Unrestricted	142,404,068	155,755,920	156,106,349	146,766,766	92,557,050
Total Governmental Activities Net Position	757,890,016	745,493,236	(1)	745,317,938	733,803,875
Business-Type Activities	-	-	-	-	-
Net Investment in capital assets	66,822,118	68,469,469	69,239,563	67,327,809	67,981,326
Unrestricted	10,912,409	12,340,936	10,541,338	10,495,570	8,069,182
Total Business-type Activities Net Position	77,734,527	80,810,405	79,780,901	77,823,379	76,050,508
Primary Government
Net Investment in capital assets	493,209,449	482,263,027	485,920,100	489,728,448	489,550,145
Restricted	189,098,617	175,943,758	172,531,052	164,636,470	197,082,889
Unrestricted	153,316,477	168,096,856	166,647,687	157,262,336	100,626,232
Total Primary Government Net Position	835,624,543	826,303,641	825,098,839	811,627,254	787,259,266

Governmental Activities	2020	2019	2018	2017	2016
Net Investment in capital assets	424,163,964	429,729,549	438,184,070	449,037,170	459,644,720
Restricted	196,858,726	200,536,233	197,349,364	197,824,604	193,298,431
Unrestricted	86,017,220	90,057,306	83,054,707	87,091,894	78,812,066
Total Governmental Activities Net Position	707,039,910	720,323,088	718,588,141	733,953,668	731,755,217 (2)
Business-Type Activities	-	-	-
Net Investment in capital assets	68,394,059	69,070,734	69,111,797	69,829,772	70,202,487
Restricted	-	-	-	-	-
Unrestricted	6,672,261	6,590,251	5,609,843	4,829,456	4,479,575
Total Business-type Activities Net Position	75,066,320	75,660,985	74,721,640	74,659,228	74,682,062
Primary Government
Net Investment in capital assets	492,558,023	498,800,283	507,295,867	518,866,942	529,847,207
Restricted	196,858,726	200,536,233	197,349,364	197,824,604	193,298,431
Unrestricted	92,689,481	96,647,557	88,664,550	91,921,350	83,291,641
Total Primary Government Net Position	782,106,230	795,984,073	793,309,781	808,612,896	806,437,279

(1) The City's 2024 net position was restated due to an error corrections related to expenditures that were not capitalized as part of construction in progress and unrecorded accrued interest. (2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. ===== PAGE 194 =====

	City of Palm Desert Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting)
Expenses	2025	2024	2023	2022	2021
Governmental Activities:
General government	39,384,397	46,406,293	26,185,065	24,738,040	25,610,212
Public safety	47,044,930	43,639,884	40,753,734	37,396,780	34,280,941
Housing & Redevelopment	9,719,050	27,871,773	13,251,192	9,626,399	10,496,579
Parks, recreation and culture	16,867,169	20,317,786	19,112,483	8,880,984	7,969,386
Public works	26,114,830	28,646,485	20,646,936	22,071,598	24,979,279
Library	2,934,418	606,561	-	-	-
Payments to other agencies	-	-	-	2,692	-
Interest on long term debt	64,265	153,203	143,521	148,079	176,259
Total Governmental activities Expenses	142,129,059	167,641,985	120,092,931	102,864,572	103,512,656
Business-Type Activities:
Desert Willow Golf Course	12,823,461	12,973,341	11,073,128	9,910,813	8,960,991
Office Complex - Parkview	3,350,190	1,362,313	1,409,321	951,353	872,212
Total Business-Type Activities	16,173,651	14,335,654	12,482,449	10,862,166	9,833,203
Total primary government expenses	158,302,710	181,977,639	132,575,380	113,726,738	113,345,859
Program Revenues
Governmental Activities
Charges for services
General government	3,045,889	2,889,464	2,678,135	2,901,226	2,437,840
Housing & Redevelopment	9,539,293	9,193,031	11,016,631	8,060,726	7,455,959
Public safety	22,620,838	20,828,172	18,831,126	17,506,658	18,828,021
Parks, recreation and culture	3,605,304	3,578,805	3,339,445	675,307	325,485
Public works	3,117,706	2,860,351	2,958,606	3,075,351	2,443,299
Operating grants & contributions	10,428,342	9,902,196	13,039,734	20,328,308	10,617,579
Capital grants & contributions	4,713,712	17,310,806	4,673,498	4,828,197	16,836,560
Total Governmental Activities Program Revenues	57,071,084	66,562,825	56,537,175	57,375,773	58,944,743
Business-Type Activities
Charges for Service:
Desert Willow Golf Course	12,633,426	12,200,236	12,159,419	11,068,847	9,171,607
Office Complex - Parkview	1,325,850	1,220,790	1,473,376	1,340,680	1,291,020
Capital grants & contributions	79,325	189,931	99,154	187,083	220,198
Total Business-type activities program revenue	14,038,601	13,610,957	13,731,949	12,596,610	10,682,825
Total Primary Government program revenue	71,109,685	80,173,782	70,269,124	69,972,383	69,627,568
Net (Expense) / Revenue
Governmental activities	(85,057,975)	(101,079,160)	(63,555,756)	(45,488,799)	(44,567,913)
Business-type activities	(2,135,050)	(724,697)	1,249,500	1,734,444	849,622
Total Primary Government Net Expense	(87,193,025)	(101,803,857)	(62,306,256)	(43,754,355)	(43,718,291)
General Revenues & Other Changes in Net Position
Governmental Activities:
Taxes: (Combined/Net Pass-through)	77,298,518	67,521,298	67,809,190	66,204,764	47,221,069
Investment Earnings			5,165,176	(1,971,646)	301,330
Gain/(loss) on sales of capital assets		-	825,294	-	-
Miscellaneous	19,799,572	21,092,008	1,250,480	3,850,798	1,214,362
Special Item (3)	-	-	-	-	-
Transfers In / (Out)	356,665	294,105	-	-	-
Gain on Transfer to Successor Agency/ Extraordinary Gain (2)	-	-	-	-	-
Total Governmental activities Net Revenues	97,454,755	88,907,411	75,050,140	68,083,916	48,736,761
Business-Type Activities:
Investment Earnings			450,279	(99,994)	20,283
Gain/(loss) on sales of capital assets	-	-	-	-	-
Miscellaneous	720,874	743,269	257,743	138,421	114,283
Transfers Out	(356,665)	(294,105)	-	-	-
Total Business-type activities	364,209	449,164	708,022	38,427	134,566
Total primary government	97,818,964	89,356,575	75,758,162	68,122,343	48,871,327
Change in Net Position
Governmental Activities:	12,396,780	(12,171,749)	11,494,384	22,595,117	4,168,848
Business-Type Activities:	(1,770,841)	(275,533)	1,957,522	1,772,871	984,188
Total primary government	10,625,939	(12,447,282)	13,451,906	24,367,988	5,153,036

(1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (3) City established an allowance for advances owed by the Successor Agency. ===== PAGE 195 =====

(Accrual Basis of Accounting)

City of Palm Desert Changes in Net Position (Continued) Last Ten Fiscal Years

Expenses	2020	2019	2018	2017	2016
Governmental Activities:
General government	24,297,715	23,252,576	18,467,097	15,708,054	14,836,881
Public safety	37,286,860	37,195,732	36,543,050	34,943,220	34,009,984
Housing & Redevelopment	8,802,290	9,067,858	9,605,756	10,954,630	8,162,859
Parks, recreation and culture	7,651,094	8,284,914	8,240,115	9,850,200	9,223,126
Public works	28,270,798	14,836,332	18,358,907	14,892,145	47,044,197
Library	-	-	-	-	-
Payments to other agencies	-	-	-	-	-
Interest on long term debt	203,183	231,228	259,250	271,603	289,000
Total Governmental Activities Expenses	106,511,940	92,868,640	91,474,175	86,619,852	113,566,047
Business-Type Activities:
Desert Willow Golf Course	8,603,243	8,700,514	8,763,220	8,243,515	8,165,183
Office Complex - Parkview	856,196	874,753	930,815	893,125	1,005,918
Total Business-Type Activities	9,459,439	9,575,267	9,694,035	9,136,640	9,171,101
Total primary government expenses	115,971,379	102,443,907	101,168,210	95,756,492	122,737,148
Program Revenues
Governmental Activities
Charges for services
General government	2,343,116	2,645,724	2,388,260	2,095,648	2,185,123
Housing & Redevelopment	8,446,585	8,180,354	7,551,760	6,861,450	7,029,595
Public safety	16,429,810	14,503,741	10,801,436	10,603,708	10,606,464
Parks, recreation and culture	532,543	829,557	821,824	793,527	772,801
Public works	2,386,635	2,762,045	2,685,831	2,327,521	2,186,153
Operating grants & contributions	10,416,281	10,426,397	8,555,881	7,931,900	9,496,520
Capital grants & contributions	3,661,487	4,016,193	2,442,621	7,710,355	10,839,715
Total Governmental Activities Program Revenues	44,216,457	43,364,011	35,247,613	38,324,109	43,116,371
Business-Type Activities
Charges for Service:
Desert Willow Golf Course	7,099,985	8,743,654	8,432,273	7,497,664	7,240,866
Office Complex - Parkview	1,311,140	1,298,066	1,250,456	1,284,462	1,280,230
Capital grants & contributions	183,556	504,217	167,670	605,186	111,942
Total Business-type activities program revenue	8,594,681	10,545,937	9,850,399	9,387,312	8,633,038
Total Primary Government program revenue	52,811,138	53,909,948	45,098,012	47,711,421	51,749,409
Net (Expense) / Revenue
Governmental Activities	(62,295,483)	(49,504,629)	(56,226,562)	(48,295,743)	(70,449,676)
Business-type activities	(864,758)	970,670	156,364	250,672	(538,063)
Total Primary Government Net Expense	(63,160,241)	(48,533,959)	(56,070,198)	(48,045,071)	(70,987,739)
General Revenues & Other Changes in Net Position
Governmental Activities:
Taxes: (Combined/Net Pass-through)	45,210,477	53,894,917	50,150,650	47,628,454	44,747,151
Investment Earnings	2,366,204	3,170,693	1,901,536	1,041,232	2,074,934
Contributions not restricted for specific purpose	-	-	-	-	-
Gain(loss) on sales of assets	80,490	7,452	17,274	2,145	24,292
Miscellaneous	1,355,134	1,396,514	1,573,106	1,522,363	1,828,677
Special Item (3)	-	(7,530,000)	-	-	-
Transfers In / (Out)	-	300,000	300,000	300,000	237,500
Gain on Transfer to Successor Agency/Extraordinary Gain (2)	-	-	-	-	72,138,669
Total Governmental Activities Net Revenues	49,012,305	51,239,576	53,942,566	50,494,194	121,051,223
Business-Type Activities:
Investment Earnings	159,115	181,310	74,873	26,494	24,924
Gain(loss) on sales of capital assets	-	87,365	131,175	-	-
Miscellaneous	110,978	-	-	-	-
Transfers Out	-	(300,000)	(300,000)	(300,000)	(237,500)
Total Business-type activities	270,093	(31,325)	(93,952)	(273,506)	(212,576)
Total primary government	49,282,398	51,208,251	53,848,614	50,220,688	120,838,647
Change in Net Position
Governmental Activities:	(13,283,178)	1,734,947	(2,283,996)	2,198,451	50,601,547
Business-Type Activities:	(594,665)	939,345	62,412	(22,834)	(750,639)
Total primary government	(13,877,843)	2,674,292	(2,221,584)	2,175,617	49,850,908

City of Palm Desert Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting)

General Fund:	2025	2024	2023	2022	2021
Nonspendable	2,673,405	2,888,448	3,501,822	4,050,414	4,178,180
Committed	63,315,645	52,308,943	83,424,843	82,741,109	73,856,851
Assigned	18,337,816	18,698,560	19,282,496	18,238,107	16,696,825
Unassigned	36,378,597	52,457,702	14,707,351	32,645,330	5,681,608
Total General Fund	120,705,463	126,353,653	120,916,512	137,674,960	100,413,464
All other Governmental Funds:
Nonspendable	76,945	80,800	51,657	19,591	18,427
Restricted	189,098,617	175,666,695	172,531,603	164,636,470	168,368,520
Committed	13,841,493	20,274,259	15,568,245	15,761,482	16,312,379
Assigned	27,003,402	24,365,783	32,522,600	28,078,039	27,459,735
Unassigned	-	(445,505)	-	(126,614)	-
Total all other Governmental Funds	230,020,457	219,942,032	220,674,105	208,368,968	212,159,061

General Fund:	2020	2019	2018	2017	2016
Nonspendable	7,196,092	10,559,396	10,509,094	9,067,979	9,528,630
Committed	66,012,415	63,197,223	59,666,638	-	-
Assigned	16,196,564	15,964,130	15,492,508	658,817	991,853
Unassigned	3,473,480	3,322,321	4,702,308	74,259,748	71,842,172
Total General Fund	92,878,551	93,043,070	90,370,548	83,986,544	82,362,655
All other Governmental Funds:
Nonspendable	15,705	193,189	1,726	1,276	3,052
Restricted	168,806,454	175,780,733	169,549,126	171,044,474	165,411,544
Committed	16,275,373	16,247,652	16,751,821	16,771,055	16,873,834
Assigned	27,133,815	21,238,271	23,258,063	23,250,337
Unassigned	-	-	-	-	-
Total all other Governmental Funds	212,231,347	213,459,845	209,560,736	211,067,142	182,288,430

(1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. (2) Advances to the Successor Agency reclassified from Nonspendable to Restricted for Special Revenue Funds. (3) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. ===== PAGE 198 =====

City of Palm Desert Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting)

Revenues:	2025	2024	2023	2022	2021
Taxes	99,920,081	87,339,337	86,687,919	84,037,191	65,209,322
Special assessments collected	3,857,792	3,697,666	3,618,972	3,407,107	3,381,657
Licenses & permits	1,870,568	1,990,632	3,111,176	2,622,695	1,504,694
Intergovernmental revenues	8,118,989	11,371,128	6,711,363	12,300,071	20,136,679
Rental income	9,866,772	9,463,306	8,958,960	8,129,025	7,320,419
Charges for services	10,783,474	10,284,637	8,743,794	6,175,500	4,889,634
Investment Earnings	17,085,932	18,508,081	12,129,730	(2,402,801)	1,298,728
Fines & forfeitures	152,182	106,152	127,087	105,198	147,671
Miscellaneous	1,251,338	11,955,948	852,153	7,340,808	3,776,838
Contributions from other government	-	-	-	1,974,653	-
Total Revenues	152,907,128	154,716,887	130,941,154	123,689,447	107,665,642
Expenditures:
General government	35,343,813	34,683,367	24,896,946	24,079,563	23,478,543
Housing & redevelopment	9,523,008	13,090,694	10,310,551	8,232,440	8,839,559
Public safety	45,392,840	43,449,970	40,660,248	37,322,951	34,035,102
Parks, recreation & culture	15,416,612	18,912,572	17,708,634	7,439,687	6,073,015
Public works	12,624,619	14,102,656	15,287,888	17,667,805	18,533,419
Library	2,934,418	606,561	-	-	-
Capital outlay	23,864,718	24,510,104	7,835,762	12,110,677	7,840,438
Debt service:
Principal retirement	619,246	582,854	263,809	2,294,052	174,000
Interest and fiscal charges	111,809	153,203	135,903	157,462	184,529
Total Expenditures	145,831,083	150,091,981	117,099,741	109,304,637	99,158,605
Excess(deficiency of Revenues over(under) expenditures	7,076,045	4,624,906	13,841,413	14,384,810	8,507,037
Other financing sources (uses)
Transfers in	29,910,322	15,057,580	26,746,473	11,555,402	10,186,341
Transfers out	(33,504,265)	(15,155,662)	(27,707,762)	(11,864,512)	(11,230,751)
Special Item (3)	-	-	-	-	-
Extraordinary Gain / (Loss) (2)	-	-	-	2,603,284	-
Sale of property	-	(295,519)	(88,163)	(1,001,688)	-
Lease and subscription arrangements	670,410	473,763	529,156	-	-
Total Other financing sources (uses)	(2,923,533)	80,162	(520,296)	1,292,486	(1,044,410)
Net Change In Fund Balance	4,152,512	4,705,068	13,321,117	15,677,296	7,462,627
Debt service as a percentage of noncapital expenditures	0.6%	0.6%	0.4%	2.5%	0.4%
Revenues:	2020	2019	2018	2017	2016
Taxes	59,635,918	67,102,185	61,906,859	59,466,545	56,735,503
Special assessments collected	3,481,924	3,948,157	3,445,246	3,318,114	3,296,705
Licenses & permits	1,268,965	1,416,829	1,326,049	1,678,709	2,057,843
Intergovernmental revenues	6,401,926	6,194,152	5,682,704	7,249,515	15,429,238
Rental income	7,071,648	6,899,916	6,675,632	6,439,458	5,896,480
Charges for services	5,272,577	5,223,285	2,894,821	2,356,363	2,082,843
Investment Earnings	10,311,159	7,166,097	3,626,892	2,086,224	1,837,319
Fines & forfeitures	127,801	273,434	162,370	135,276	295,269
Miscellaneous	4,741,905	2,892,940	2,886,542	2,594,433	2,317,499
Contributions from other government	-	-	-	3,550,991	-
Contributions from property owners	-	-	-	-	7,868
Total Revenues	98,313,823	101,116,995	88,607,115	88,875,628	89,956,567
Expenditures:
General government	21,468,512	24,269,546	19,281,102	16,887,293	15,783,955
Housing & redevelopment	7,090,941	7,504,119	8,522,801	9,239,680	6,438,849
Pass-through-agreement	-	-	-	-	-
Public safety	37,021,952	36,901,283	36,247,656	34,674,418	33,750,347
Parks, recreation & culture	5,902,166	6,497,391	6,467,713	7,157,821	6,831,534
Public works	21,994,806	8,728,354	12,183,852	8,794,894	11,031,584
Contributions to property owners	-	-	-	-	19,584,487
Capital outlay	5,117,968	3,396,511	915,422	2,169,035	7,071,738
Debt service:
Principal retirement	225,000	587,000	150,000	237,000	257,000
Interest and fiscal charges	210,292	244,050	260,971	277,814	296,336
Total Expenditures	99,031,637	88,128,254	84,029,517	79,437,955	101,045,830
Excess(deficiency of Revenues over(under) expenditures	(717,814)	12,988,741	4,577,598	9,437,673	(11,089,263)
Other financing sources (uses)
Transfers in	10,702,762	5,319,448	6,613,352	9,406,888	6,030,706
Transfers out	(11,377,965)	(5,736,558)	(6,313,352)	(12,218,428)	(6,075,206)
Special Item (3)	-	(6,000,000)	-	-	-
Extraordinary Gain / (Loss) (2)	-	-	-	-	72,138,669
Sale of property	-	-	-	-	225,000
Lease and subscription arrangements	-	-	-	-	-
Total Other financing sources (uses)	(675,203)	(6,417,110)	300,000	(2,811,540)	72,319,169
Net Change In Fund Balance	(1,393,017)	6,571,631	4,877,598	6,626,133	61,229,906
Debt service as a percentage of noncapital expenditures	0.5%	1.0%	0.5%	0.7%	0.6%

(1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all (1) On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of a City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. For more information on the dissolution of the RDA please see Note 16 and 17. (2) The City's Capital Properties Capital Project Fund received $65,566,963 and the Housing Asset Fund received $6,571,706 for a combined total of $72,138,669 of capital bond proceeds transferred from the Successor Agency. (3) City established an allowance for advances owed by the Successor Agency. Source: CITY Finance Department ===== PAGE 199 =====

Total Revenues

Total Expenditures

(1) Combined Other is a combination of rental income, investment earnings, and charges for services. (2) Miscellaneous Other is a combination of fines and forfeitures, miscellaneous, contributions from other governments, and contributions from property owners. (3) Debt Expenditures is a combination of interest/fiscal charges and principal retirement. (4) Public works is a combination of public works and contributions to property owners. Note: Graphs excludes Other financing sources and uses. ===== PAGE 200 =====

City of Palm Desert Supplemental - Historical General Fund Revenues (including Transfers In) Last Ten Fiscal Years

FY	2025	2024	2023	2022	2021
Revenue Type:
Sales Tax	$ 31,379,891	$ 25,391,092	$ 26,354,774	$ 26,193,390	$ 21,156,220
Transient Occupancy Tax	23,881,245	23,019,911	23,825,410	22,098,939	10,760,455
Property Tax (3)	11,352,162	8,768,396	12,952,007	11,703,419	11,193,276
Investment Earnings	5,803,145	6,767,157	5,025,534	(1,867,595)	284,744
Transfer In	2,491,425	396,806	2,478,731	3,774,873	3,515,966
Franchises	3,729,388	3,727,659	3,574,273	3,334,555	3,066,989
State Subventions (1) (3)	344,193	131,253	146,957	127,546	38,945
Building & Grading Permits	1,266,180	1,491,171	2,290,974	2,079,314	1,195,893
Reimbursements (4)	1,614,177	1,531,895	1,464,230	530,474	1,229,484
Business License Tax	1,334,949	1,272,190	1,139,514	1,326,920	962,940
Timeshare Mitigation Fee	3,465,702	1,789,418	1,711,324	1,555,137	1,501,625
Plan Check Fees	607,498	471,287	644,448	616,576	480,881
Property Transfer Tax	797,229	918,983	934,735	1,197,951	1,027,833
Other Revenues (2)	8,727,853	8,772,591	3,581,082	8,337,209	8,072,509
Total General Revenue	$ 96,795,037	$ 84,449,810	$ 86,123,993	$ 81,008,708	$ 64,487,760

FY	2020	2019	2018	2017	2016
Revenue Type:
Sales Tax	$ 18,445,806	$ 21,434,387	$ 18,627,704	$ 18,505,449	$ 18,994,779
Transient Occupancy Tax	11,681,583	17,250,843	17,019,034	15,054,259	11,252,997
Property Tax (3)	11,101,584	11,074,207	10,777,998	10,157,813	10,461,595
Investment Earnings	4,181,814	2,672,643	1,237,562	644,341	725,015
Transfer In	2,472,976	937,202	1,610,830	1,472,852	1,390,258
Franchises	3,025,984	3,078,855	3,097,521	3,146,702	3,095,873
State Subventions (1) (3)	60,593	82,722	38,876	23,101	59,317
Building & Grading Permits	953,176	1,064,071	1,048,973	1,247,390	1,216,115
Reimbursements (4)	1,375,770	1,468,351	1,388,654	1,407,811	1,589,511
Business License Tax	1,038,137	1,216,712	1,154,275	1,118,183	1,269,082
Timeshare Mitigation Fee	1,467,905	1,678,375	1,543,762	1,467,028	1,500,683
Plan Check Fees	468,180	619,763	691,096	431,115	592,818
Property Transfer Tax	566,468	727,978	664,822	690,975	491,060
Other Revenues (2)	3,130,862	2,352,803	1,951,122	2,185,703	2,189,063
Total General Revenue	$ 59,970,838	$ 65,658,912	$ 60,852,229	$ 57,552,722	$ 54,828,166

(1) State Subventions is any combination of motor vehicle, off-highway in-lieu, and subventions from state. (2) Other Revenues is any combination of miscellaneous penalties and interest, permits, grants, parking bails, fees, sales of maps and publications, vehicle and court fines, rental income, other revenues and Federal ARPA-Covid19. (3) The State of California reprogramed motor vehicle fees, the City now receives this as property taxes. (4) Reimbursements is a combination of RDA costs and other reimbursements, due to dissolution in February 2012 the RDA reimbursement is limited and applies to existing projects. Source: CITY Finance Department ===== PAGE 201 =====

(1) Combined Other is any combination of transfers, franchises, state subventions*, building and grading permits, reimbursements, business license taxes, timeshare mitigation fees, plan check fees, property transfer taxes. It also may include any combination of miscellaneous bails, fees, fines, grants, incomes, penalties, permits, sales and taxes.*State Subventions is any combination of motor vehicle, off-highway in-lieu, and subventions from state. ===== PAGE 202 ===== # City of Palm Desert Supplemental - Historical General Fund Expenditures (Including Transfers Out) Last Ten Fiscal Years

FY	2025	2024	2023	2022	2021
Expenditure:
Public Safety (1)	$ 26,030,163	$ 24,181,750	$ 23,304,557	$ 20,288,195	$ 19,326,751
City Administration (2)	19,506,327	21,172,587	14,202,930	12,620,102	12,990,562
Public Works Administration	1,909,389	1,897,288	3,026,733	2,265,476	1,886,402
Community Promotions	440,314	746,864	1,347,204	1,216,272	420,424
Street Maintenance	2,676,968	2,342,284	2,156,583	2,421,966	2,317,468
Building Safety	1,439,413	1,282,002	1,366,067	1,751,817	1,461,477
Street Resurfacing	-	-	-	-	-
Public Works (4)	4,572,060	4,126,215	3,852,469	1,338,520	1,165,671
Other Expenditures (3)	46,009,211	23,737,442	35,851,470	18,572,299	17,384,092
Total Expenditures	$ 102,583,845	$ 79,486,432	$ 85,108,013	$ 60,474,647	$ 56,952,847

FY	2020	2019	2018	2017	2016
Expenditure:
Public Safety (1)	$ 21,415,334	$ 20,975,032	$ 21,088,867	$ 20,424,249	$ 20,151,237
City Administration (2)	11,429,468	12,521,081	11,460,325	8,238,228	7,971,706
Public Works Administration	2,457,045	2,149,715	2,333,897	2,637,630	2,664,871
Community Promotions	947,370	1,249,674	1,179,305	1,062,611	791,565
Street Maintenance	2,212,933	2,185,648	2,020,797	2,418,451	2,709,328
Building Safety	1,661,372	1,828,083	1,579,734	1,849,442	1,888,290
Street Resurfacing	-	-	2,760	25,326	1,083,919
Public Works (4)	1,151,447	1,250,969	1,133,007	970,877	1,004,989
Other Expenditures (3)	18,860,388	20,826,188	13,669,533	18,302,019	14,010,275
Total Expenditures	$ 60,135,357	$ 62,986,390	$ 54,468,225	$ 55,928,833	$ 52,276,180

(1) Public Safety is any combination of animal regulation, police services, community safety and traffic safety expenditures, this does not include the cost for Fire Services. Fire Services are reported in a different fund. (2) City Administration is any combination of community services, independent audit, City attorney, City clerk, City council, City manager, information technology, elections, finance, general services, human resources, insurance, legal special services, legislative advocacy and unemployment insurance expenditures. (3) Other Expenditures is any combination of acquisitions, committees, contributions, retiree health, planning & community development, economic development, marketing, interfund transfers, parks, recreation and culture, extraordinary loss and visitor center, capital outlay, special item, included in the transfer out is transfer to the Fire fund for its shortfall. (4) Public Works is a combination of curb & gutter, parking lot, auto fleet, corporate yard, public building maintenance, Portola Community center, storm water permit. ===== PAGE 203 =====

City of Palm Desert Supplemental Historical General Revenue and Expenditures Per Capita Last Ten Fiscal Years

FY	2025	2024	2023	2022	2021
Total General Revenue (2)	$ 94,303,612	$ 83,846,855	$ 86,123,993	$ 77,168,851	$ 60,971,794
Population (1)	51,980	50,889	50,615	50,889	53,892
General Revenue Per Capita	1,814	1,648	1,702	1,516	1,131

FY	2020	2019	2018	2017	2016
Total General Revenue (2)	$ 57,497,862	$ 64,721,710	$ 59,241,399	$ 56,079,870	$ 53,437,908
Population (1)	52,986	53,625	52,769	50,740	49,335
General Revenue Per Capita	1,085	1,207	1,123	1,105	1,083

FY	2025	2024	2023	2022	2021
Total General Expenditures (2)	$ 71,575,262	$ 79,012,669	$ 85,108,013	$ 52,730,364	$ 49,481,094
Population (1)	51,980	50,889	50,615	50,889	53,892
General Expenditures Per Capita	1,377	1,553	1,681	1,036	918

FY	2020	2019	2018	2017	2016
Total General Expenditures (2)	$ 51,498,878	$ 57,900,932	$ 49,992,388	$ 48,427,111	$ 48,134,252
Population (1)	52,986	53,625	52,769	50,740	49,335
General Expenditures Per Capita	972	1,080	947	954	976

(1) Population figures are as of January start of fiscal year. (2) Interfund Transfers In/Out, extraordinary loss (gain), and special item are not included in total. ===== PAGE 206 ===== Revenue Capacity Information ===== PAGE 207 =====

City of Palm Desert Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years

Fiscal Year Ended June 30	Residential Property	Commercial Industrial Property	Institutional Property	Vacant Land	Less: Tax Exempt	Total Taxable Assessed Value	Total Direct Tax Rate	Estimated Actual Taxable Value (1)
2025	15,739,123,263	3,474,602,770	82,728,637	310,232,390	*	-	20,682,159,347	1.00000
2024	14,806,817,526	3,268,784,947	77,828,213	291,855,799	*	-	19,457,053,253	1.00000
2023	13,770,177,817	3,039,934,131	72,379,384	271,422,690	*	-	18,094,846,015	1.00000
2022	12,816,062,846	2,919,685,840	67,899,671	254,623,765	*	-	16,974,917,677	1.00000
2021	12,277,100,484	2,872,316,290	65,652,944	279,025,011	*	-	16,413,235,941	1.00000
2020	11,781,804,552	2,771,257,791	63,343,035	300,879,417	*	(45,437)	15,835,758,806	1.00000
2019	11,231,546,199	2,675,659,205	62,224,633	373,347,796	(326,679,322)	15,556,158,170	1.00000	15,045,226,485
2018	10,757,283,204	2,554,854,761	59,762,684	388,457,449	(313,754,093)	14,940,671,116	1.00000	14,445,331,683
2017	10,555,732,091	2,434,816,656	58,318,962	379,073,252	(306,174,550)	14,579,740,457	1.00000	14,095,158,994
2016	10,174,360,142	2,358,860,033	56,840,001	412,090,006	(312,620,004)	14,210,000,198	1.00000	13,743,682,041

(1) Estimated Actual Taxable Value = Net Taxable Value* Per HDL there was an artifact change in the Riverside County Assessors data that occurred primarily between 2018 and 2019, new vs old system differences, the few properties which are listed as having assessed value and being non-taxable are either new to the roll or are newly non-taxable for 2019. Notes: Property Taxes in Riverside County are subject to the State of California's Proposition 13, Jarvis-Gann Initiative which allows reappraisals of real property only when there is a change in ownership or new construction takes place. Further, the proposition limits property assessment increase to no more than two(2%) percent annually. Property is assessed at one hundred percent (100%) of its fair market value at the time of new construction or change in ownership. The tax rate is one (1%) percent of the assessed value. ===== PAGE 208 =====

City of Palm Desert Historical Net Assessed Taxable Values Citywide Graph - Assessed Valuation Growth Last Ten Fiscal Years

Percent Increase in Assessed Valuation FY 2016 to FY 2025

FY	Retail Centers	FY
88/89	Town Center Mall	83/84
93/94	Desert Springs Marriott	86/87
93/94	One Eleven Town Ctr	88/89
94/95	Mervyn's Center	92/93
04/05	Desert Crossing	95/96
04/05	Lucky's/Albertson Deep Canyon	96/97
	Remodel 111 Town Ctr (Best Buy)	97/98
	Gardens on El Paseo	98/99
	Remodel Westfield Mall (Sears, Barnes & Noble)	04/05
	Sears Automotive	04/05
	Lowes Home Improvement	05/06
	Walmart / Sam's Supercenters	05/06
	Kohl's	07/08
	Golfsmith Extreme	08/09
	El Paseo Village	09/10
	Best Buy & Ultra	11/12
	Remodel Westfield Mall (Dick's/H&M/Restaurants)	12/13
	PGA Tour Superstore	12/13
	Total Wine & More	13/14
	Tesla Motors	15/16

===== PAGE 209 =====

City of Palm Desert

Supplemental FY 2025 and 2024 Breakdown of Basic 1% Property Tax Rate Not in Redevelopment Project Area

Taxing Agency	FY 2025 Rate	FY 2024 Rate
County General	28.177327%	28.177327%
City of Palm Desert Library	2.728242%	2.728242%
County Structure Fire Protection	5.873086%	5.873086%
City of Palm Desert (1)	0.000000%	0.000000%
Desert Sands Unified School District	36.221587%	36.221587%
Desert Community College	7.526714%	7.526714%
Riverside County Reg. Park & Open Space	0.426231%	0.426231%
Riverside County Office of Education	4.094919%	4.094919%
Desert Hospital	1.996808%	1.996808%
Coachella Valley Public Cemetery	0.339927%	0.339927%
Desert Recreation District	2.071624%	2.071624%
Coachella Valley Mosquito & Vector Control	1.369698%	1.369698%
Coachella Valley County Water	2.736607%	2.736607%
Coachella Valley County Water Imp. District 80	2.972906%	2.972906%
Coachella Valley County Water Storm Water Unit	3.464324%	3.464324%
General Purpose Basic 1%	100.000000%	100.000000%

(1) City of Palm Desert is a No-Low Property Tax City and the 7% represents what the state allocates to No-Low Property Tax Cities. Source: County of Riverside, Property Tax Allocation Percentages, TRA 018-041. ===== PAGE 210 ===== # City of Palm Desert Property Tax Rates Direct and Overlapping Property Tax Rates Last Ten Fiscal Years

City Direct
Fiscal Year	Basic County-wide Levy	Total Direct Tax Rate
2025	1.00000	1.00000
2024	1.00000	1.00000
2023	1.00000	1.00000
2022	1.00000	1.00000
2021	1.00000	1.00000
2020	1.00000	1.00000
2019	1.00000	1.00000
2018	1.00000	1.00000
2017	1.00000	1.00000
2016	1.00000	1.00000

Overlapping Rates
Desert Sands	Desert	Coachella	Coachella	Palm Springs
Unified School	Community	Valley Water	Valley Water	Unified B&I
District	College Dist.	District	District I.D. 58	1192-A Ds
0.07500	0.03950	0.11000	0.00000	0.10650
0.07500	0.03950	0.11000	0.00000	0.14493
0.07500	0.03950	0.11000	0.00000	0.15187
0.07500	0.03950	0.11000	0.00000	0.15030
0.07390	0.03947	0.10000	0.00000	0.10334
0.07381	0.03983	0.10000	0.00000	0.10542
0.07418	0.03978	0.10000	0.00000	0.10603
0.07251	0.04030	0.10000	0.00000	0.11146
0.08599	0.02036	0.10000	0.00000	0.11802
0.10915	0.02087	0.10000	0.00000	0.08978

Notes: Proposition 13 limits the ability of the city to raise the property tax rate. Source: CalMuni Statistics Inc ===== PAGE 211 ===== # City of Palm Desert Principal Property Taxpayers Current and Nine Years Ago

2025
Taxpayer	Taxable Assessed Value	Percentage of Total City Tax Assessed Value
NEWAGE DesertSprings	$ 189,442,408	0.92%
Palm Desert Pacific Owner	174,372,784	0.85%
WVC Rancho Mirage Inc	163,796,678	0.80%
Gardens on El Paseo LLC	150,740,424	0.73%
PRU Desert Crossing LLC	112,032,649	0.54%
CC Cimarron LP	74,278,088	0.36%
First American Trust	67,469,751	0.33%
Walmart/Sams	60,926,969	0.30%
Life Storage	57,662,000	0.28%
Sunrise Spectrum	56,497,656	0.27%
Total	$ 1,107,219,407	5.38%

2016
Taxpayer	Taxable Assessed Value	Percentage of Total City Tax Assessed Value
WEA Palm Desert	$ 147,691,936	1.07%
Marriott Desert Springs	144,345,789	1.05%
WVC Rancho Mirage Inc	103,564,856	0.75%
Gardens on El Paseo LLC	103,104,377	0.75%
PRU Desert Crossing LLC	88,086,771	0.64%
Monarch Sevilla Venture	68,545,957	0.50%
Walmart Real Estate Business Trust	59,504,429	0.43%
Marrakesh Comm Assoc	54,218,195	0.39%
Segovia Operations	48,872,670	0.35%
Sunrise Spectrum	47,990,406	0.35%
Total	$ 865,925,386	6.28%

Note: The estimated property tax revenue stated above is based upon net taxable values, tax ratios and base year values that impact the revenue calculation. As a result, parcels with the same assessed value that are assigned to different tax rate areas may contribute dissimilar amounts of total revenue to the City and Redevelopment Agency. ===== PAGE 212 ===== # City of Palm Desert Property Tax Levies and Collections Last Ten Fiscal Years

Fiscal Year Ended June 30,	Taxes Levied for the Fiscal Year	Collected within the Fiscal Year of the Levy (1) (2)		Collections in Subsequent Years(3)	Total Collections to Date
Fiscal Year Ended June 30,	Taxes Levied for the Fiscal Year	Amount	Percentage of Levy	Collections in Subsequent Years(3)	Amount(3)(4)	Percentage of Levy
2016	6,212,993	5,943,252	95.66%	269,741	6,212,993	100.00%
2017	6,731,899	6,022,566	89.46%	182,652	6,205,218	92.18%
2018	6,729,952	6,553,297	97.38%	173,642	6,726,940	99.96%
2019	6,867,405	6,640,656	96.70%	207,894	6,848,550	99.73%
2020	7,202,939	6,502,032	90.27%	211,602	6,713,634	93.21%
2021	7,332,966	6,391,062	87.16%	256,431	6,647,493	90.65%
2022	8,203,212	7,930,195	96.67%	273,017	8,203,212	100.00%
2023	8,853,225	8,320,643	93.98%	532,582	8,853,225	100.00%
2024	9,685,707	9,074,891	93.69%	610,816	9,685,707	100.00%
2025	9,908,750	8,330,710	84.07%	1,578,040	9,908,750	100.00%

(1) City of Palm Desert is on the "Teeter Plan" with the County of Riverside. The first payment was received in the fiscal year 1993/94. (2) City of Palm Desert is a "No-Low Property Tax City". Proposition 13 rolled the tax rates back to 1973 which is when the City of Palm Desert incorporated and the Property Tax rates were zero. Based on current state law the County allocates 7% of the 1% assessed values within the City less the Redevelopment Agency tax increment. Fiscal Year 1992/93 was the first year to receive the No/Low taxes. (3) Includes tax collections accrued as of June 30, 2023. (4) Includes amounts receivable for tax year 2022-2023 along with prior receivables due for prior tax years. Source: Riverside County Auditor Controller Office and City of Palm Desert ===== PAGE 213 =====

Graph - Historical Sales Tax Trends June 30, 2025

Top 25 Sales Tax Generators (1)	Primary Economic Category
ABC SUPPLY COMPANY	BUILDING MATERIALS
ALBERTSON'S FOOD CENTERS	GROCERY STORES
APPLE INC	ELECTRONICS/APPLIANCE STORES
BEST BUY STORES LP	ELECTRONICS/APPLIANCE STORES
BIGHORN GOLF CLUB	LEISURE/ENTERTAINMENT
CARMAX AUTO SUPERSTORES	USED AUTOMOTIVE DEALERS
CHICK FIL A	QUICK-SERVICE RESTAURANTS
CIRCLE K	CONVENIENCE STORES/LIQUOR
COSTCO	DISCOUNT DEPT STORES
JW MARRIOTT DESERT SPRINGS	HOTELS/MOTELS
LEEDS JEWELERS	JEWELRY STORES
LOUIS VUITTON	FAMILY APPAREL
LOWES	BUILDING MATERIALS
MACY'S DEPARTMENT STORES	DEPARTMENT STORES
NORDSTROM RACK	DEPARTMENT STORES
PGA TOUR SUPERSTORE	SPORTING GOODS/BIKE STORES
SAKS FIFTH AVENUE	DEPARTMENT STORES
SAM'S CLUB WITH FUEL	DISCOUNT DEPT STORES
SIMPLOT GROWER SOLUTIONS	GARDEN/AGRICULTURAL SUPPLIES
SUPERIOR POOL PRODUCTS	DRUGS/CHEMICALS
TARGET STORES	DISCOUNT DEPT STORES
TJ MAXX	FAMILY APPAREL
TOMMY BAHAMA	FAMILY APPAREL
TOTAL WINE & MORE	CONVENIENCE STORES/LIQUOR
WAL-MART SUPERCENTER	DISCOUNT DEPT STORES

(1) Listed in Alphabetical Order

Millions

Note: Current California law prohibits production of individual tax information as an effort not to infringe on proprietary information, therefore confidential information which is protected by law is not disclosed. The State of California exchanged Sales Tax Revenue with Property taxes, this amount represents the portion of sales tax that were exchanged. Source: SBOE Data, MuniServices LLC. In Lieu given to city from State ERAF Property Taxes, City of Palm Desert ===== PAGE 214 ===== Debt Capacity Information ===== PAGE 215 ===== # City of Palm Desert Ratios of Outstanding Debt by Type Last Ten Fiscal Years

Governmental Activities

Business Type Activities

Governmental Activities				Business Type Activities
Fiscal Year	Special Assessment/Local Obligation Bondsb,c,d	Leases Payable	Subscriptions Payable	Capital Leases	Total Primary Government	Percentage of Total Personal Incomea,f	Total Debt Per Capitaa,f
2016	3,045,000	-	-	929,860	3,974,860	0.16%	83
2017	2,808,000	-	-	499,881	3,307,881	0.14%	69
2018	2,658,000	-	-	1,493,330	4,151,330	0.17%	87
2019	2,071,000	-	-	1,595,394	3,666,394	0.24%	128
2020	1,846,000	-	-	1,145,011	2,991,011	0.23%	105
2021	1,672,000	-	-	675,976	2,347,976	0.20%	92
2022	1,294,000	2,406,942	-	187,428	3,888,370	0.11%	76
2023	1,162,000	2,197,126	399,583	319,169	4,077,878	0.15%	81
2024	1,068,000	1,978,673	278,662	232,952	3,558,287	0.11%	70
2025	995,000	2,168,769	212,731	144,557	3,521,057	0.11%	68

Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. a - Personal income, population and per capita information provided by California Department of Finance, and U.S Census Bureau and/or estimated by City Finance using 1% growth rate. - Special Assessment Government Activities includes Highlands Undergrounding AD No# 04-01, as of June 30, 2023 the balance was $1.032M. - Fiscal Year End 2009 the City issued the Energy Independence Program Limited Obligation Improvement Bonds Series 2009A (Taxable) $2.5 million to fund the Energy Independence Loan Program. The actual Bond Issuance was for $2.015m. At June 30, 2023 the outstanding balance was $0.071M The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable) The special assessment collection commenced during the fiscal year 2010-2011. At June 30, 2023 the outstanding balance was $0.059M. - In addition the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable). On September 2, 2014 the bonds were called in full. As of June 30, 2017 there were no outstanding bonds. - Personal income and Per Capita statistic includes government and business type activities combined. ===== PAGE 216 ===== # City of Palm Desert Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years

General Bonded Debt Outstanding
Special Assessment Bonds	Percentage of Actual Taxable Value of Property	Per Capita

Note: There are no General Obligation Bonds from FY 2016 to FY 2025 ===== PAGE 217 ===== # City of Palm Desert Supplemental Special Assessment Information June 30, 2025

District Name\Description	2003 01-01 Revenue Bonds Silver Spur Ranch Utility Underground5	2004-2 Section 29 Assessment District Limited Obligation Improvement Bonds Series 2021	Community Facilities District No. 2005-1 (University Park) Special Tax Bonds Series 2021A6	Community Facilities District No. 2021-1 (University Park) Special Tax Bonds Series 20217	Community Facilities District No. 2021-1 (University Park) Special Tax Bonds Series 2024
Bond Issue Date	6/25/2003	6/23/2021	7/13/2021	7/13/2021	3/6/2024
Final Maturity Date	9/2/2028	9/2/2037	9/1/2036	9/1/2051	9/1/2053
Highest Interest Rate	5.375%	4.000%	4.000%	4.000%	5.000%
Bond Issue Amount	2,340,000	16,400,000	5,165,000	15,200,000	11,600,000
Matured Principal	1,625,000	2,285,000	800,000	865,000	-
Called Principal	175,000	1,305,000	-	-	-
Outstanding Bonds (4)	540,000	12,810,000	4,365,000	14,335,000	11,600,000
Redemption Premium	3.00%	3.00%	3.00%	3.00%	N/A
Original Parcels	201	859	66	243	411
Active Parcels	189	775	49	366	243
Reserve Requirement	155,475	1,415,800	468,400	874,200	1,021,147
Reserve Balance 24/25(1)	168,236	1,415,853	468,408	874,214	1,021,156
Principal Due 25/26(2)	125,000	770,000	280,000	325,000	40,000
Principal Levied 24/25(3)	120,000	815,000	290,000	315,000	-
Interest Due 25/26(2)	25,666	497,000	168,800	543,675	570,825
Interest Levied 24/25(3)	32,250	554,500	178,800	553,275	531,975
24/25 Delinquency Rate	0.00%	0.13%	1.64%	0.00%	0.00%
Arbitrage Installment Computation Date: 90% Rebate Due	06/25/23	N/A	N/A	N/A	N/A
Arbitrage Yield Rate	4.9129%	N/A	N/A	N/A	N/A
Arbitrage-Amount Owed	4	-	-	-	-
Continuing Disclosure Last Report Issued:	02/2025	02/2025	02/2025	02/2025	02/2025

(1) Reserve Balances are as of 6/30/24. (2) Outstanding bond balance at June 30, 2025. (3) Amount represents principal and interest collected during the FY 23/24 tax roll for Debt Service Payment due in FY 24/25 per debt service schedule. (4) Levied amounts reflect adjustments for construction funds, reserve funds, redemption funds and other adjustments. (5) The schedule presents the information for each individual local obligation bonded district. Assessment Districts 94-3 Merano and 01-01 Silver Spur were refunded and obligated to pay Debt Service to Series 2003 Assessment Revenue Bonds see note 16 for additional information. (6) Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021A were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021B were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021C were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021D were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021E were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021F were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021G were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021H were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021I were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021J were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021K were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021L were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021M were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021N were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021O were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021P were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021Q were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R1 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R2 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R3 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R4 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R5 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R6 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R7 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R8 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R9 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R10 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R11 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R12 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R13 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R14 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R15 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R16 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R17 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R18 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R19 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R20 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R21 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R22 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R23 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R24 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R25 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R26 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R27 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R28 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R29 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R30 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R31 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R32 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R33 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R34 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R35 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R36 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R37 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R38 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R39 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R40 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R41 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R42 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R43 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R44 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R45 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R46 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R47 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R48 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R49 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R50 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R51 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R52 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R53 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R54 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R55 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R56 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R57 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R58 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R59 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R60 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R61 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R62 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R63 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R64 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R65 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R66 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R67 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R68 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R69 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R70 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R71 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R72 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R73 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R74 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R75 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R76 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R77 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R78 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R79 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R80 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R81 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R82 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R83 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R84 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R85 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R86 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R87 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R88 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R89 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R90 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R91 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R92 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R93 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R94 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R95 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R96 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R97 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R98 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R99 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R10 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R11 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R12 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R13 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R14 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R15 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R16 were used to refund Community Facilities District No. 2005-1 (University Park) Special Tax Bonds 2021R17 were used to refund Community Facilities District No. 2005-1 (7) Community Facilities District No. 2021-1 (University Park) Special Tax Bonds 2021A were used to pay and defense a pro rata portion of outstanding Commun Source: Willdan Financial Annual Report ===== PAGE 218 ===== # City of Palm Desert Direct and Overlapping Government Activities Debt June 30, 2025

2024/25 Assessed Valuation:	$ 20,494,234,987		City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:	Total Debt 6/30/25	% Applicable (1)	Debt 6/30/25
Desert Community College District	$ 640,515,000	17.343%	$ 111,084,516
Desert Sands Unified School District	475,170,000	33.312%	$ 158,288,630
Palm Springs Unified School District	440,983,050	4.589%	$ 20,236,712
City of Palm Desert Limited Obligation Improvement Bonds	70,000	100.000%	70,000
City of Palm Desert Community Facilities District No. 2005-1	4,365,000	100.000%	4,365,000
City of Palm Desert Community Facilities District No. 2021-1	25,935,000	100.000%	25,935,000
City of Palm Desert 1915 Act Bonds	14,280,000	100.000%	14,280,000
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT			$ 334,259,858
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Riverside County General Fund Obligations	$ 1,134,209,783	4.829%	$ 54,770,990
Riverside County Pensions Obligations	603,055,000	4.829%	$ 29,121,526
Desert Sands Unified School District Certificates of Participation	6,325,000	33.312%	$ 2,106,984
City of Palm Desert	-	100.000%	-
Desert Recreation District Certificates of Participation	993,462	25.068%	$ 249,041
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT			$ 86,248,541
OVERLAPPING TAX INCREMENT DEBT: (SUCCESSOR AGENCIES)	$ 346,855,000	0.165-100%	$ 126,738,946
TOTAL CITY DIRECT DEBT			$ 3,376,500
TOTAL OVERLAPPING DEBT			$ 547,247,345
COMBINED TOTAL DEBT			$ 550,623,845	(2)

(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2024-2025 Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt	1.63%
Total Direct Debt ($0)	0.02%
Net Combined Total Debt	2.69%
Ratios to Redevelopment Successor Agencies Incremental Valuation	$(13,796,239,873)
Total Overlapping Tax Increment Debt	0.92%

Source: California Municipal Statistics, Inc., City of Palm Desert Finance Department ===== PAGE 219 ===== # City of Palm Desert Legal Debt Margin Information Last Ten Fiscal Years ## Legal Debt Margin Calculation for Fiscal Year 2025

Assessed Value	$ 20,494,234,987
Debt Limit (15% of Assessed Value) (1)	3,074,135,248
Debt Applicable to Limit:
General Obligation Bonds	926,000
Less: Amount set aside for repayment of general obligation debt	-
Total Debt Applicable to Limit	-
Legal debt margin	$ 3,073,209,248

FISCAL YEAR

	2016	2017	2018	2019	2020
Debt Limit	2,059,815,120	2,114,442,742	2,167,115,649	2,256,723,736	2,345,639,686
Total Net debt applicable to limit	1,451,000	1,410,000	1,368,000	1,310,000	1,178,000
Legal debt margin	2,058,364,120	2,113,032,742	2,165,747,649	2,255,413,736	2,344,461,686
Total net debt applicable to the limit as a percentage of debt limit	0.07%	0.07%	0.06%	0.06%	0.05%
	FISCAL YEAR
	2021	2022	2023	2024	2025
Debt Limit	2,432,559,897	2,513,282,720	2,692,646,137	2,899,106,873	3,074,135,248
Total Net debt applicable to limit	1,130,000	1,082,000	1,032,000	980,000	926,000
Legal debt margin	2,431,429,897	2,512,200,720	2,691,614,137	2,898,126,873	3,073,209,248
Total net debt applicable to the limit as a percentage of debt limit	0.05%	0.04%	0.04%	0.03%	0.03%

(1) Section 43605 of the California Government Code. Source: California Municipal Statistic, Inc. San Francisco ===== PAGE 220 ===== # City of Palm Desert Pledged-Revenue Coverage Last Ten Fiscal Years

Fiscal Year	Special Assessment Collectionsa,c	Special Assessment Debt Service			Coverage	Tax Incrementb			Coverage
		Principal	Interest	Coverage		Special Assessment Collections	Debt Service
		Principal	Interest	Coverage		Principal	Interest	Coverage
2016	8,537,227	25,401,000h	4,463,786	0.2859	34,810,024e	18,055,000		16,755,024	1.000
2017	5,896,670	3,192,000	3,233,399	0.9177	37,535,680e,i	16,255,000e,i		21,280,680	1.000
2018	5,590,479	3,545,000	3,088,864	0.8427	23,428,001e,i	14,235,000e,i		9,193,001	1.000
2019	5,608,312	2,427,000	2,942,348	1.0445	25,986,960e,i	17,210,000e,i		8,776,960	1.000
2020	5,280,905	2,080,000	2,818,146	1.0781	27,833,500e,i	19,475,000e,i		8,358,500	1.000
2021	5,397,140	2,119,000	2,698,952	1.1202	25,215,056e,i	17,330,000e,i		7,885,056	1.000
2022	3,342,319	488,000	1,072,389	2.1420	25,462,250e,i	18,115,000e,i		7,347,250	1.000
2023	3,253,687	1,439,235	1,577,199	1.0787	25,798,956e,i	19,045,000e,i		6,753,956	1.000
2024	4,525,650	1,565,000	1,515,565	1.4691	26,032,829e,i	19,915,000e,i		6,117,829	1.000
2025	3,713,905	2,893,000	1,818,454	0.7883	19,136,594		13,600,000	5,536,594	1.000

Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. The City issued $2.015 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable) The special assessment collection will commence during the fiscal year 2009-2010 with the first interest payment paid on March 2, 2010.b Tax increment bonds are backed by property tax increment based on calculation provided by the Riverside County tax assessor office. Additional information on tax increment can be found in the notes to the financial statements. The City issued $1.136 million dollars of the Energy Independence Program (AB811 Assessments) Limited Obligation Improvement Bonds (Taxable) The special assessment collection will commence during the fiscal year 2010-2011, in addition, the Palm Desert Financing Authority issued $5.225 million dollars of the Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable). Interest is paid monthly commencing August 2009 and Principal is paid annually on September 2. The first principa/l payment was paid on September 2, 2010 d A portion of the $50.51 (2007) and $17.915 (2008) million CFD 2005-1 (University Park) was prepaid in the amount of $6.269 Million. The prepaid $6.269M and $2.280 (2004-1) were called during on September 2, 2014. The total amount payable for the bonded obligations is disbursed by the State of California Department of Finance to the City of Palm Desert Successor Agency. The annual collection equal the annual obligations. The City called the $5.225 Million Energy Independence Program Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable) in full on September 2, 2014 in the amount of $4.485 Million. The Energy Fund used the remaining $5.225 Bond Funds in the amount of $2.155 Million in addition to the $2.5 Million loan from the City General Fund as proceeds to call the bonds. The City of Palm Desert loaned the Energy Fund $2.5 Million to call the $5.225 Million Energy Independence Program Lease Revenue Bonds, Series 2009 (Federally Taxable). The $2.5 Million is included as Special Assessment Collections. During the Fiscal Year 2015-16 the Communities Facilities District 2005-1 (University Park Series, Special Tax Bonds Series 2006A and Series 2007 defeated $20.885M of the original issued $67.715M. During the Fiscal Year 2016-17 the Successor Agency issued four series of bonds (1) the Tax Allocation Refunding Bonds, 2017 Series A ($52.39M), (ii) Taxable Tax Allocation Refunding Bonds, 2017 Series B ($140.130M), Tax allocation Refunding Bonds, 2017 Series H-A ($7.365M), and (iv) Taxable Tax Allocation Refunding Bonds, 2017 H-B ($45.815M). See Note 18 Tax Allocation Bonds. The 2017 Refunding Bonds refunded all of the tax allocation revenue bonds; with the exception of the Project Area No. 1 2007A Bonds, and the Project Area No. 2 2003 Bonds. During the Fiscal Year 2021-22, the City of Palm Desert issued CFD 2021-1 Special Tax Bonds Series 2021 and CFD 2005-1 Special Tax Refunding Bonds Series 2021A. The purpose of these bonds is to refund the CFD 2005-1 Special Tax Bonds Series 2006A.k During the Fiscal Year 2021-22, the City of Palm Desert issued Section 29 Assessment District 2004-02 Limited Obligation Refunding Improvement Bonds Series 2021. The purpose of this issuance is to refund the Section 29 AD 2004-02 Limited Obligation Improvement Bonds Series 2007. ===== PAGE 221 ===== Demographic and Economic Information ===== PAGE 222 ===== # City of Palm Desert Demographic and Economic Statistics Last Ten Calendar Years

Calendar Year End	City Population	Percentage Increase (Decrease)	Personal Income CYa	Per Capita Personal Income CY	City Unemployment Rateb	Riverside County Population	Percentage Increase (Decrease)	County Unemployment Rateb
2025	51,980	0.04%	3,142,022,952	60,447	6.80%	2,495,640	0.18%	6.00%
2024	51,961	2.66%	3,095,589,116	59,575	5.50%	2,491,037	2.12%	5.40%
2023	50,615	-0.54%	3,049,841,493	60,256	4.80%	2,439,234	0.15%	5.00%
2022	50,889	-5.57%	3,004,769,944	59,046	4.10%	2,435,525	-0.77%	4.00%
2021	53,892	1.71%	2,960,364,477	54,931	7.40%	2,454,453	0.50%	8.00%
2020	52,986	-1.19%	2,916,615,248	55,045	17.20%	2,442,304	0.09%	14.70%
2019	53,625	1.62%	2,873,512,560	53,585	4.90%	2,440,124	1.00%	4.40%
2018	52,769	4.00%	2,831,046,858	53,650	5.00%	2,415,955	1.31%	4.80%
2017	50,740	2.85%	2,789,208,727	54,971	4.00%	2,384,783	1.57%	5.70%
2016	49,335	-3.37%	2,747,988,894	55,701	4.20%	2,347,828	1.71%	6.70%

a - Personal Income estimated based on average growth rate of previous four years. The growth rate factor used was 1.5%. Income data will be updated once the actual data is available. b - Unemployment rate for fiscal year 24/25 is based on annual information from State of California Employment Development Department Labor Market Information Division (not seasonally adjusted) Sources: State Department of Finance, State Employment Development Department ===== PAGE 223 ===== # City of Palm Desert Principal Employers Current and Nine Years Ago

	2025*
Employer	Employees	Rank	Percentage of Total City Employment
JW Marriot-Desert Springs Resort & DS Villas	2,304	1	10.02%
Universal Protection Services	1,500	2	6.52%
Securitas-Security Service USA	700	3	3.04%
Avida Caregivers	550	4	2.39%
Organization of Legal Pro's	501	5	2.18%
Sunshine Landscape	500	6	2.17%
Costco Wholesale	250	7	1.09%
Bighorn Golf Club	250	8	1.09%
Yellow Cab of Desert	160	9	0.70%
Whole Foods Market	150	10	0.65%

	2016
Employer	Employees	Rank	Percentage of Total City Employment
JW Marriot-Desert Springs Resort & DS Villas	2,304	1	8.15%
Universal Protection Services	1,500	2	5.31%
Securitas-Security Service USA	700	3	2.48%
Avida Caregivers-P.Desert	550	4	2.15%
Sunshine Landscape	500	5	1.77%
Bighorn Golf Club	250	6	0.88%
Costco	250	7	0.88%
Westin-Desert Willow	248	8	0.88%
Time Warner Cable	236	9	0.83%
Marriott Shadow Rige	208	10	0.74%

Sources: CA Employment Development Department - Federal and State Government not included* Data based on prior years numbers, at the time of preparation data was not available. ===== PAGE 224 =====

City/ Municipal Government
Form of Government:	Council - City Manager/Charter City
Date of Incorporation:	November 26, 1973
Number of Employees:	153 Full-time Employees
Size of City:	26.96 Square Miles
Geographic Location:	Located 117 miles east of Los Angeles and 515 miles south of San Francisco.
Streets:	173 paved street miles
Number of Business Licenses:	5,729 active business licenses
Number of Hotels & Rooms:	19 hotels, 2,822 rooms
CONTRACT SERVICES:
Police Department	Contract with Riverside County Sheriff - 61 sworn positions plus 19 support staff (rounded to nearest FTE)
Fire Department	Contract with Riverside County/State Fire 65 positions plus 12 Fire Prevention staff
Animal Control	Riverside County Animal Services
Water & Sewer	Coachella Valley Water District
Trash Collection	Burrtec - Waste Management
Electric	Southern California Edison
Gas	Southern California Gas
Telephone	Verizon
Airport	Palm Springs International Airport
Public Education
Elementary School (grades K - 5)	4
Middle School (grades 6 - 8)	1
High School (grades 9 - 12)	1
Community College - College of the Desert	1
CSUSB - Palm Desert Campus	1
UCR - Palm Desert Graduate Center	1
Insurance Coverage
General Liability Coverage\n(Excludes Earthquake & Flood)	Calif. Joint Powers Insurance Authority 50 Million/EventnExcess Coverage: from2 Million up to $50 Million limit
Special Events	Calif. Joint Powers Insurance Authority $1 Million
Worker's Compensation	Calif. Joint Powers Insurance $10 Million
Property Insurance	Calif. Joint Powers Insurance Based on Prop. Value
Health Insurance
Medical	California PERS; choice of PPO, HMO, Kaiser, Blue Shield
Dental	Delta Dental
Vision	Vision Service Plan
Disability Insurance	Disability - The Hartford Insurance Company
Life	The Hartford Insurance Company
Retirement	California PERS - Public Employees' Retirement System

Source: CITY Finance Department # City of Palm Desert Supplemental Miscellaneous Statistics June 30, 2025 Source: City of Palm Desert ===== PAGE 225 ===== Operating Information ===== PAGE 226 ===== # City of Palm Desert Full-time Equivalent City Government Employees by Function / Program Last Ten Fiscal Years

Function / Program	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
General Government
City	64	58	38	35	33	33	31	31	32	32
Economic Dev & Housingb	16	16	17	12	11	11	11	10	11	13
Public Safety	29	30	29	28	30	30	28	29	29	28
Police & Fire (1)	175	158	141	141	140	174	172	179	170	163
Public Works	44	43	39	33	38	38	39	39	39	40
Totals	328	305	264	249	252	286	281	288	281	276

(1) The City operates as a "contract city" utilizing, primarily, agreements with other governmental entities, private firms and individuals to provide services. Contracted services include: Police and Fire protection through the County of Riverside, Cal-Fire, animal control, health services, legal services and landscape maintenance. a - As of June 2011 realignments were made due to budget cuts, retirements and layoffs, these continued to FY 2013. b - On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. Source: City of Palm Desert Financial Plan, California Department of Forestry and Fire Protection, Riverside County Sheriff's Department ===== PAGE 227 ===== # City of Palm Desert Operating Indicators by Function / Program Last Ten Fiscal Years

Function / Program	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
General Government
Business License Inspections	*	*	*	*	*	*	*	*	*	*
Contracted Services - Burrtec Waste (1)
Refuse Collected (tons)	55,140	60,828	60,753	61,932	60,226	58,096	59,154	56,346	54,301	52,772
Recyclables Collected	26,843	26,843	25,497	22,043	20,964	21,772	27,391	28,119	26,651	23,818
Public Safety
Physical Arrests	1,145	1,215	1,155	1,198	1,066	621	758	1,654	1,620	1,284
Parking Violations	1,411	1,315	1,128	769	780	899	375	575	587	712
Traffic Violations	6,502	1,617	1,497	1,398	2,070	1,392	3,525	7,012	6,939	6,223
Emergency Responses-Fire Department	12,155	11,843	11,136	10,557	9,701	15,088	10,009	9,984	9,617	9,285
Fires Extinguished	147	104	98	138	104	147	93	90	68	103
Fire Inspections	#	#	#	#	#	3,372	5,397	3,378	1,274	2,118
Building Permits Issued	3,093	4,165	4,795	5,211	3,651	3,118	3,912	3,644	4,734	4,704
Building Inspections Conducted	12,279	14,255	21,857	16,802	13,451	13,439	13,965	18,601	23,542	24,756
Public Works
Street Resurfacing (miles) (3)	34.6	0.87	37.6	2.25	1.83	16.9	31.6	7.3	25.8	2.9
Parks, recreation & culture
Athletic Field Permits Issued	2,846	2,244	2,766	2,255	2,262	643	2,990	2,934	3,197	2,997
Amphitheater / Pavilions Permits Issued	186	194	292	350	244	6	119	121	106	104
Community Center Admissions	15,045	11,030	37,048	32,326	15,577	9,746	52,203	60,769	51,694	64,493
Aquatic Center Admissions (2)	42,651	48,092	38,864	31,320	38,249	32,905	52,102	53,739	58,023	60,359

(1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals to provide services. Contracted services include: Police and Fire protection through the County of Riverside, animal control, health services, legal services and landscape maintenance. (2) Aquatic Center operations began in June 2011, managed by the YMCA. (3) New methods of street resurfacing have improved efficiency, therefore equaling more miles resurfaced. (*) Per Building & Safety Department business license inspections are no longer done. (#) City discontinued the City Fire Marshal services and contracted with the County for State mandated inspections only. Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection, City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste and The YMCA. ===== PAGE 228 =====

Function / Program	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
General Government
Contracted Services (1)
Collection trucks	39	39	39	35	29	25	25	24	24	35
Public Safety - Police & Fire
Police Stations	1	1	1	1	1	1	1	1	1	1
Police Sub Stations	1	1	1	1	1	1	1	1	1	1
Patrol Units-Cars	26	26	26	26	26	27	29	30	29	29
Patrol Units-Motorcycles	7	7	7	7	7	7	6	9	9	11
Fire Stations	3	3	3	3	3	3	3	3	3	3
Fire Trucks	1 plus 1 reserve	1 plus 1 reserve	1 plus 1 reserve	1 plus 1 reserve	5 plus 2 reserve	4 plus 1 reserve	4 plus 1 Reserve	4 plus 1 Reserve	4 plus 1 Reserve	4 plus 1 Reserve
Ambulance	5 plus 3 reserve	4 plus 3 reserve	4 plus 2 reserve	4 plus 2 reserve	4 plus 3 reserve	4 plus 3 reserve	4 plus 3 Reserve	4 plus 3 Reserve	4 plus 3 Reserve	4 plus 3 Reserve
Fire Prevention Pick-ups	-	-	-	-	-	2.5	4	3	3	3
Public Works
Streets (miles)	173	170	170	170	170	170	170	170	170	170
Traffic Signals	105	99	99	99	99	99	99	99	99	98
Parks, recreation & culture
Acreage	201	201	201	201	201	201	201	201	201	201
Total Parks	13	13	13	13	13	13	13	13	13	13
Playgrounds	16	16	16	16	16	16	16	16	16	16
Baseball/softball diamonds	8	8	8	8	8	8	8	8	8	8
Soccer/football fields	9	9	9	9	9	9	9	9	9	9
Basketball Courts	11	11	11	11	11	11	11	11	11	11
Tennis Courts	10	10	10	10	10	10	10	10	10	10
Volleyball Courts	8	8	8	8	8	8	8	8	8	8
Community Centers	2	2	2	2	2	2	2	2	2	2
Skateboard Parks	2	2	2	2	2	2	2	2	2	2
Aquatic Center	1	1	1	1	1	1	1	1	1	1
Commercial Office Space
(Parkview Office Complex)
Leasable Space (square feet)	51,713	45,349	47,909	50,322	50,322	50,322	50,322	50,322	50,322	50,322
Occupancy Rate	57%	75%	65%	84%	84%	91%	91%	82%	84%	90%
Number of Tenants by Type
Government (State, local regional)	5	5	5	7	7	7	7	7	7	9
Non-Profit	2	2	2	4	4	4	4	3	3	4
Private	4	4	3	3	3	3	3	2	3	1
Square Footage lease by tenant
Government (State, local regional)	22,885	23,374	23,374	31,607	31,607	31,607	31,607	30,907	32,287	33,127
Non-Profit	2,254	4,873	4,873	7,339	7,339	7,341	6,621	4,061	4,061	3,561
Private	4,310	5,643	3,083	3,083	3,083	6,693	7,468	6,218	6,938	8,688
Vacant	22,264	11,459	16,579	8,293	8,293	4,681	4,626	9,136	8,416	4,946
Municipal Golf Course
(Desert Willow Golf Resort)
Courses - Fire Cliff and Mountain View	2	2	2	2	2	2	2	2	2	2
Holes	36	36	36	36	36	36	36	36	36	36
Golf Carts	172	186	172	172	172	172	172	172	172	172
Clubhouse square footage	39,000	39,000	39,000	39,000	39,000	39,000	39,000	39,000	39,000	39,000
Rounds per Course
Fire Cliff	39,992	42,617	48,410	52,415	47,695	38,057	48,646	46,620	39,424	39,366
Mountain View	47,296	46,023	50,160	47,949	49,005	35,332	43,523	43,712	39,931	40,910
Total Annual Rounds	87,288	88,640	98,570	100,364	96,700	73,389	92,169	90,332	79,355	80,276

(1) The City operates as a "contract city" utilizing, primarily, agreement with other governmental entities, private firms and individuals to provide services. Contracted services include: Police and Fire protection through the County of Riverside, animal control, health services, legal services and landscape maintenance. Sources: Riverside County Sheriff's Dept., California State Department of Forestry & Fire Protection, City of Palm Desert, Coachella Valley Recreation & Park District, Burrtec Waste ===== PAGE 229 ===== # SUPPLEMENTAL REDEVELOPMENT CUSTODIAL STATISTICAL SECTION Note: This section is not required by GASB No. 44, however, City believes that statistical information is beneficial to the reader. On February 1, 2012 the State of California dissolved the City of Palm Desert Redevelopment Agency as part of the Statewide dissolution of all City Redevelopment Agencies, which in turn created the Successor Agency to the Redevelopment Agency of the City of Palm Desert. For more information on the dissolution of the RDA please see note 19 and note 20. ===== PAGE 230 =====

REDEVELOPMENT AGENCY PROJECT AREAS

Area 1 - Original (1975) Area 1 - Added Territory (1982) Area 2 230 Area 3 Area 4 City Boundary ===== PAGE 231 ===== # City of Palm Desert Redevelopment Agency Tax Allocation Bond Issue Information June 30, 2025

DESCRIPTION	15,745,000nTax AllocationnRevenuenBond < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Years < /td > < td style = 'text-align: center; word-wrap: break-word;' > 30 < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Bond Issue Date < /td > < td style = 'text-align: center; word-wrap: break-word;' > 03/26/03 < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Final Maturity Date < /td > < td style = 'text-align: center; word-wrap: break-word;' > 08/01/33 < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Highest Interest Rate < /td > < td style = 'text-align: center; word-wrap: break-word;' > 5.00% < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Bond Issue Amount < /td > < td style = 'text-align: center; word-wrap: break-word;' > 15,745,000
Outstanding Bond Amount	$ 13,960,000
Call Premium	1 - 2.00%
Bond Insurer	MBIA
Reserve Requirement (1)	1,574,500
Reserve Balance (1)	(1)
Called Bonds	-
Principal Due 25/26	1,340,000
Interest Due 25/26	635,725
Arbitrage Yield Rate	4.9502%
Arbitrage-Amount Owed	-
Arbitrage Five Year Due Date:	03/26/28

DESCRIPTION	Non-Housing Tax Allocation Bond (Exempt)1	Non-Housing Tax Allocation Bond (Taxable)2
Years	13	24
Bond Issue Date	01/31/17	01/31/17
Final Maturity Date	10/01/30	10/01/41
Highest Interest Rate	5.000%	4.250%
Bond Issue Amount	52,390,000	140,130,000
Outstanding Bond Amount	29,060,000	79,085,000
Bond Insurer	BAM	BAM
Reserve Requirement (1)	5,840,397	9,027,545
Reserve Balance (1)	(1)	(1)
Principal Due 25/26	6,910,000	5,710,000
Interest Due 25/26	1,280,250	2,979,956
Arbitrage Yield Rate	3.659%	3.659%
Arbitrage Five Year Due Date:	01/31/27	01/31/27

DESCRIPTION

HousingTax AllocationBond $ Exempt 3 < /td > < td style = 'text-align: center; word-wrap: break-word;' > HousingTax AllocationBond Taxable 4 < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Years < /td > < td style = 'text-align: center; word-wrap: break-word;' > 14 < /td > < td style = 'text-align: center; word-wrap: break-word;' > 6 < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Bond Issue Date < /td > < td style = 'text-align: center; word-wrap: break-word;' > 01/31/17 < /td > < td style = 'text-align: center; word-wrap: break-word;' > 01/31/17 < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Final Maturity Date < /td > < td style = 'text-align: center; word-wrap: break-word;' > 10/01/31 < /td > < td style = 'text-align: center; word-wrap: break-word;' > 10/01/23 < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Highest Interest Rate < /td > < td style = 'text-align: center; word-wrap: break-word;' > 5.000% < /td > < td style = 'text-align: center; word-wrap: break-word;' > < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Bond Issue Amount < /td > < td style = 'text-align: center; word-wrap: break-word;' > 7,365,000 < /td > < td style = 'text-align: center; word-wrap: break-word;' > 45,815,000 < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Outstanding Bond Amount < /td > < td style = 'text-align: center; word-wrap: break-word;' > 4,095,000 < /td > < td style = 'text-align: center; word-wrap: break-word;' > - < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Bond Insurer < /td > < td style = 'text-align: center; word-wrap: break-word;' > BAM < /td > < td style = 'text-align: center; word-wrap: break-word;' > BAM < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Reserve Requirement (1) < /td > < td style = 'text-align: center; word-wrap: break-word;' > 687,519 < /td > < td style = 'text-align: center; word-wrap: break-word;' > 0 < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Reserve Balance (1) < /td > < td style = 'text-align: center; word-wrap: break-word;' > (1) < /td > < td style = 'text-align: center; word-wrap: break-word;' > (1) < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Principal Due 25/26 < /td > < td style = 'text-align: center; word-wrap: break-word;' > 505,000 < /td > < td style = 'text-align: center; word-wrap: break-word;' > - < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Interest Due 25/26 < /td > < td style = 'text-align: center; word-wrap: break-word;' > 168,394 < /td > < td style = 'text-align: center; word-wrap: break-word;' > - < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Arbitrage Yield Rate < /td > < td style = 'text-align: center; word-wrap: break-word;' > 2.907% < /td > < td style = 'text-align: center; word-wrap: break-word;' > 2.907% < /td > < /tr > < tr > < td style = 'text-align: center; word-wrap: break-word;' > Arbitrage Five Year Due Date: < /td > < td style = 'text-align: center; word-wrap: break-word;' > 01/31/27 < /td > < td style = 'text-align: center; word-wrap: break-word;' > 01/31/27 < /td > < /tr > < /table > (1) Asurety bond was issued by MBIA Insurance, future reserve balance'swill be zero. 1 Refunded PA 1-4 tax exempt portion of bonds (22.07M, $19M, $24.945M, $62.3M, $17.31M, $67.6M, $4.745M, $15.05M, $11.02M, $15.695M, and $19.2M) 2 Refunded PA 1-4 taxable portion of bonds ($22.07M, $19M, $24.945M, $62.3M, $17.31M, $67.6M, $4.745M, $15.05M, $11.02M, $15.695M, and $19.2M) 3 Refunded Housing tax exempt portion of bonds (12.1M and $86.155M) Source: CITY Finance Department Source: City of Palm Desert and Successor Agency to the Palm Desert Role development Agency ===== PAGE 232 =====

City of Palm Desert Historical Tax Increment/ Redevelopment Property Tax Trust Fund Summary All Project Areas

Project Area No. 1	FY 2015/16	FY 2016/17	FY 2017/18	FY 2018/19	FY 2019/20	FY 2020/21	FY 2021/22	FY 2022/23	FY 2023/24	FY 2024/25
Gross Tax Increment	56,610,029	58,222,677	59,842,517	62,844,689	64,495,840	68,597,410	70,656,513	77,499,942	84,972,724	88,571,053
Less:
Housing Set-Aside*	11,322,006	11,644,535	11,968,503	12,568,938	12,899,168	13,719,482	14,131,303	15,499,988	16,994,545	17,714,211
SB 2557	629,449	725,403	662,238	594,754	570,820	858,150	1,503,453	1,246,470	432,274	69,967
Gross Pass-Throughs	22,961,604	25,052,727	22,919,420	25,953,291	26,949,281	28,676,151	29,944,830	33,357,702	35,580,689	37,823,623
Net Tax Increment	21,696,970	20,800,012	24,292,356	23,727,706	24,076,571	25,343,627	25,076,927	27,395,781	31,965,216	32,963,252

RPTTF Amount Deposited	24,696,424	25,131,004	19,923,194	20,331,658	21,672,933	21,069,258	16,915,008	14,831,440	12,600,746	24,332,053

Project Area No. 2	FY 2015/16	FY 2016/17	FY 2017/18	FY 2018/19	FY 2019/20	FY 2020/21	FY 2021/22	FY 2022/23	FY 2023/24	FY 2024/25
Gross Tax Increment	16,232,329	16,302,895	16,916,067	17,466,255	18,503,456	19,553,601	19,897,195	21,078,916	25,160,631	28,033,694
Less:
Housing Set-Aside*	3,246,466	3,260,579	3,383,213	3,493,251	3,700,691	3,910,720	3,979,439	4,215,783	5,032,126	5,606,739
SB 2557	180,457	202,348	187,481	165,500	172,557	243,191	188,413	339,023	150,443	21,765
Gross Pass-Throughs	6,078,194	6,103,481	6,372,798	6,609,645	7,125,321	7,569,060	7,672,621	8,741,803	10,192,720	10,943,961
Net Tax Increment	6,727,213	6,736,487	6,972,575	7,146,063	7,504,887	7,830,630	8,056,722	7,782,307	9,785,342	11,461,230

RPTTF Amount Deposited	5,547,427	5,887,814	5,516,674	5,629,776	6,106,095	6,005,764	4,763,343	4,033,947	3,731,112	7,701,357

Project Area No. 3	FY 2015/16	FY 2016/17	FY 2017/18	FY 2018/19	FY 2019/20	FY 2020/21	FY 2021/22	FY 2022/23	FY 2023/24	FY 2024/25
Gross Tax Increment	4,039,902	4,360,574	4,364,606	4,487,719	4,653,982	4,947,578	5,015,404	5,230,337	5,981,595	6,187,933
Less:
Housing Set-Aside*	807,980	872,115	872,921	897,544	930,796	989,516	1,003,081	1,046,067	1,196,319	1,237,587
SB 2557	45,175	52,745	8,947	42,853	41,139	62,062	47,593	84,122	36,511	5,001
Gross Pass-Throughs	1,510,219	1,656,158	1,662,390	1,730,228	1,813,552	1,937,004	1,985,858	2,179,024	2,438,525	2,428,172
Net Tax Increment	1,676,528	1,779,556	1,820,347	1,817,094	1,868,494	1,958,996	1,978,872	1,921,124	2,310,240	2,517,173

RPTTF Amount Deposited	1,290,623	1,295,156	1,422,709	1,451,877	1,563,906	1,519,617	1,200,676	1,000,948	887,021	1,699,936

Project Area No. 4	FY 2015/16	FY 2016/17	FY 2017/18	FY 2018/19	FY 2019/20	FY 2020/21	FY 2021/22	FY 2022/23	FY 2023/24	FY 2024/25
Gross Tax Increment	13,889,272	14,287,533	14,685,301	15,251,204	15,776,294	16,815,458	17,592,461	18,995,874	22,394,351	23,842,729
Less:
Housing Set-Aside*	2,777,854	2,857,507	2,937,060	3,050,241	3,155,259	3,363,092	3,518,492	3,799,175	4,478,870	4,768,546
SB 2557	154,976	178,812	162,715	145,017	139,433	210,710	166,282	305,520	133,556	18,715
Gross Pass-Throughs	8,866,804	9,433,947	9,943,062	10,454,725	8,434,713	11,405,344	12,185,263	13,800,057	15,336,829	15,537,348
Net Tax Increment	2,089,637	1,817,267	1,642,464	1,601,222	4,046,890	1,836,312	1,722,424	1,091,122	2,445,096	3,518,120

RPTTF Amount Deposited	2,443,507	2,610,660	4,834,978	4,934,105	5,301,405	5,164,761	4,211,595	3,635,308	3,320,895	6,550,024

*For calculation purposes only - No requirement to deposit Housing Set Aside post Redevelopment Dissolution. ===== PAGE 233 ===== ## UNIDALDESERT ## This page intentionally left blank ===== PAGE 234 =====

73510 FRED WARING DRIVE, PALM DESERT, CA 92260 WWW.PALMDESERT.GOV